An agent has to choose among a finite set of actions with payoffs depending on an unknown state of the world with two (possibly correlated) binary components, (θ1, θ2), θi∈{0,1}. Before making the choice, the agent can learn about the state by dynamically allocating his limited attention...

The well-being of agents is often directly affected by their beliefs, in the form of anticipatory feelings such as anxiety and hopefulness. Economists have tried to model this effect by introducing beliefs as arguments in decision makers' vNM utility function. One might expect that such a model...