Hi Young,
Thank you for the reply! It makes sense to allow higher upper bound for both alpha and tau since in theory they have no upper limit.
My follow-up question is how were the numbers 20 (modified tau upper bound) and 10 (modified alpha upper bound) decided? They look both arbitrary and deliberate at the same time. They look deliberate because I noticed that in the stan code (attached) the initial norm f is hard coded as 10 (ug_delta.stan line 56), which is exactly the 50% point of the endowment of 20 Chinese Yuan in the paper. Were the modified bounds chosen based on task? Or were they decided for some other reasons and the numeric similarity is just coincidence?
I have another question regarding the initial norm as well. According to the paper, they tested both fixed initial norm model and variable initial norm model, and the variable initial norm model was the superior one among all models they tested. Why does ug_delta adopt the less superior fixed initial norm model?
Thank you!
Best,
Momo
Hi Momo,
Sorry for the delayed response.
Regarding the upper bounds for alpha and tau, they weren't derived from strict theoretical constraints. Rather, they were set heuristically to balance flexibility and numerical stability during model fitting. The similarity between the alpha upper bound (10) and the fixed initial norm value (10) is coincidental.
The fixed-norm was adopted in ug_delta primarily for simplicity and ease of generalization. But we agree that allowing the initial norm to vary would make the model more flexible and better reflect individual differences.
Please let me know if you have any further questions!
Best,
Jeongyeon