This paper provides an empirical test of the rational addiction model, used in economics to model individuals …

considerations moves behavior toward traditional economic rationality in UG, PD, and DG. Despite entering the study with higher …

learning model with the theory of rational inattention introduced by Sims (2006). In the model firms optimally allocate …

This paper deals with one of the main empirical problems associated with the rational addiction theory, namely that its … addiction equation cannot distinguish between time consistency and inconsistency in preferences. We show that an encompassing … general specification of the rational addiction model embeds the possibility of testing for time consistent versus time …

In this paper we question the hypothesis of full rationality in the context of job changing behaviour, via simple … forces of job change are future real wages and expected job quality. Bounded rationality suggests that individuals will … and between cells. Under full rationality the following are to be expected: high inter-cell mobility, large dispersion …