Goecke, Henry; Luhan, Wolfgang J.; Roos, Michael W.M. - In: Journal of Economic Behavior & Organization 94 (2013) C, pp. 80-89
While standard theory assumes rational, optimizing agents under full information, the latter is rarely found in reality. Information has to be acquired and processed—both involving costs. In rational-inattentiveness models agents update their information set only when the benefit outweighs the...