Introduction

Ever since economic theory started to engage in formal modeling of uncertainty, it has espoused the Bayesian paradigm. In the mid-twentieth century, the Bayesian approach came to dominate decision theory and game theory, and it has remained a dominant paradigm in the applications of these theories to economics to this day. Economic problems ranging from insurance and portfolio selection to signaling and health policy are typically analyzed in a Bayesian way. In fact, there is probably no other field of formal inquiry involving uncertainty in which Bayesianism enjoys such a predominant status as it does in economic theory.