English

Entropy Regularized Belief Reporting

Theoretical Economics 2025-12-02 v2

Abstract

This paper investigates a model of partition dependence, a widely reported experimental finding where the agent's reported beliefs depend on how the states are grouped. In the model, called Entropy Regularized Belief Reporting (ERBR), the agent is endowed with a latent benchmark prior that is unobserved by the analyst. When presented with a partition, the agent reports a prior that minimizes Kullback-Leibler divergence from the latent benchmark prior subject to entropy regularization. This captures the intuition that while the agent would like to report a prior that is close to her latent benchmark prior, she may also have a preference to remain noncommittal. I provide the structural properties of the model that allow for identification of the latent benchmark prior and apply the model to the experimental data from Benjamin et al. (2017).

Cite

@article{arxiv.2506.22649,
  title  = {Entropy Regularized Belief Reporting},
  author = {Elchin Suleymanov},
  journal= {arXiv preprint arXiv:2506.22649},
  year   = {2025}
}
R2 v1 2026-07-01T03:37:22.598Z