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 …

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 …

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 …

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 …

We provide an axiomatic analysis of dynamic random utility, characterizing the stochastic
choice behavior of agents who solve dynamic decision problems by maximizing some …

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 …

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 …

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 …

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 …

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 …