Set coverage and robust policy
Highlights
► We consider robust control applications of partial identification. ► Coverage of the identified set may be preferable to coverage of each of its points. ► Decisions based on confidence regions covering the identified set are close to optimal. ► Decisions based on confidence regions covering each of its points may be far from optimal.
Section snippets
Acknowledgments
Financial support from SSHRC Grant410-2010-242 is gratefully acknowledged. We also thank Badi Baltagi and an anonymous referee for helpful comments.
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