The efficient market hypothesis predicts that asset prices reflect all available information. Recent experimental work found the rational expectation model to outperform the prior information model in contingent claim markets when traders hold homogeneous values, despite the no trade...

We illustrate information overload in annuity decisions. More complete, and therefore more complex information about annuity products leads to reduced attention and produces worse consumer choices. In an eye-tracking experiment comparing consumer response to a real, relatively brief annuity...

In the seminal rational inattention model of Matĕjka and McKay (2015), logit demand arises from the discrete choice of agents who are uncertain about choice payoffs and who have access to a flexible, costly information acquisition technology (RI-logit). A notable limitation of this powerful...

High-speed internet has increased the amount of information available in health care markets. Online information may improve health outcomes if it reduces information frictions and helps patients choose higher quality providers or causes providers to improve quality. We examine how health...

The practice of sponsored search advertising - where advertisers pay a fee to appear alongside particularWeb search results - is now one of the largest and fastest growing source of revenue for Web search engines. We model and compare several mechanisms for allocating sponsored slots, including...