Revealed preference, rational inattention, and costly information acquisition
Apparently mistaken decisions are ubiquitous. To what extent does this reflect irrationality,
as opposed to a rational trade-off between the costs of information acquisition and the …
as opposed to a rational trade-off between the costs of information acquisition and the …
[PDF][PDF] The cost of optimally-acquired information
AW Bloedel, W Zhong - Unpublished Manuscript, November, 2020 - wjzhong.com
This paper develops a theory for the expected cost of optimally acquired information when
information can be acquired sequentially. We study the “reduced-form” Indirect Cost …
information can be acquired sequentially. We study the “reduced-form” Indirect Cost …
Rationally inattentive preferences and hidden information costs
We show how information acquisition costs can be identified using observable choice data.
Identifying information costs from behavior is especially relevant when these costs depend …
Identifying information costs from behavior is especially relevant when these costs depend …
Random choice and private information
J Lu - Econometrica, 2016 - Wiley Online Library
We consider an agent who chooses an option after receiving some private information. This
information, however, is unobserved by an analyst, so from the latter's perspective, choice is …
information, however, is unobserved by an analyst, so from the latter's perspective, choice is …
Dynamic random utility
We provide an axiomatic analysis of dynamic random utility, characterizing the stochastic
choice behavior of agents who solve dynamic decision problems by maximizing some …
choice behavior of agents who solve dynamic decision problems by maximizing some …
Foundations for optimal inattention
A Ellis - Journal of Economic Theory, 2018 - Elsevier
This paper models an agent who has a limited capacity to pay attention to information and
thus conditions her actions on a coarsening of the available information. An optimally …
thus conditions her actions on a coarsening of the available information. An optimally …
Dynamic logit with choice aversion
D Fudenberg, T Strzalecki - Econometrica, 2015 - Wiley Online Library
We characterize a generalization of discounted logistic choice that incorporates a parameter
to capture different views the agent might have about the costs and benefits of larger choice …
to capture different views the agent might have about the costs and benefits of larger choice …
Cardinal representations of information
J Mensch - Available at SSRN 3148954, 2018 - papers.ssrn.com
In the spirit of von Neumann and Morgenstern (1947), this paper provides an axiomatic
representation of information. Under the von Neumann-Morgenstern axioms, along with an …
representation of information. Under the von Neumann-Morgenstern axioms, along with an …
Dynamic concern for misspecification
G Lanzani - Available at SSRN 4454504, 2022 - papers.ssrn.com
We consider an agent who posits a set of probabilistic models for the payoff-relevant
outcomes. The agent has a prior over this set but fears the actual model is omitted and …
outcomes. The agent has a prior over this set but fears the actual model is omitted and …
Dynamic belief elicitation
CP Chambers, NS Lambert - Econometrica, 2021 - Wiley Online Library
At an initial time, an individual forms a belief about a future random outcome. As time
passes, the individual may obtain, privately or subjectively, further information, until the …
passes, the individual may obtain, privately or subjectively, further information, until the …