alternative rational inattention theory better conform with evidence from perceptual discrimination experiments …

voting and social learning, we illustrate that sequential elections place too much weight on the preferences and information …

is unobserved, and he optimally learns from observations of the economy. This is a classic problem of learning and … of modern policy-relevant models. As in most Bayesian learning problems, the optimal policy typically includes an … approximation to the BOP. We provide some simple examples to illustrate the role of learning and experimentation in an MJLQ …

This paper develops a theory of expectations-driven business cycles based on learning. Agents have incomplete knowledge … series is captured, unlike in standard models. Inherited from real business cycle theory, the benchmark model suffers a …

Does bounded rationality make paternalism more attractive? This Essay argues that errors will be larger when suppliers … comparative statics suggest that bounded rationality will often increase the costs of government decisionmaking relative to …

learning through college grades and wages, whereby individuals may leave or re-enter college as a result of the arrival of new …