Showing 141 - 150 of 631,623
Consider an investment problem with strategic complementarities and incomplete information about returns. This paper shows that investors aggregate their private information in equilibrium by trading a token and observing its market price over multiple rounds before making the investment...
Persistent link: https://www.econbiz.de/10014239114
in pre-rational expectations macroeconomic theory. Here we show that electoral cycles in taxes, government spending and …
Persistent link: https://www.econbiz.de/10014105336
We present a novel approach to finite Rational Inattention (RI) models based on the ignorance equivalent, a fictitious action with state-dependent payoffs that effectively summarizes the optimal learning and conditional choices. The ignorance equivalent allows us to recast the RI problem as a...
Persistent link: https://www.econbiz.de/10014048696
Rational inattention theory is economic theory that recognizes that people have finite information-processing capacity …, in the sense of Shannon and engineering information theory. This approach is still in the early stages of development … macroeconomics and finance. In this chapter we introduce the basic ideas of information theory, show how it can be introduced …
Persistent link: https://www.econbiz.de/10014025676
Persistent link: https://www.econbiz.de/10013452790
Persistent link: https://www.econbiz.de/10013367169
Persistent link: https://www.econbiz.de/10014328245
Persistent link: https://www.econbiz.de/10014336108
Persistent link: https://www.econbiz.de/10014445595
Persistent link: https://www.econbiz.de/10012806009