the cost of generating the information used to make a decision through a dynamic evidence accumulation process. We … alternative rational inattention theory better conform with evidence from perceptual discrimination experiments …

the cost of generating the information used to make a decision through a dynamic evidence accumulation process. We … alternative rational inattention theory better conform with evidence from perceptual discrimination experiments …

-consistent expectations. This implicitly assumes unrealistic cognitive abilities on the part of economic decision makers. The relevant … question, however, is not whether the assumption can be literally correct, but how much it would matter to model decision … problems such as chess or go, in which decision makers look ahead only a finite distance into the future, and use a value …

We propose a model of optimal decision making subject to a memory constraint. The constraint is a limit on the … complexity of memory measured using Shannon's mutual information, as in models of rational inattention; but our theory differs …

We propose a model of optimal decision making subject to a memory constraint. The constraint is a limit on the … complexity of memory measured using Shannon's mutual information, as in models of rational inattention; but our theory differs …