Similar Search Results

Innovation and Information Acquisition under Time Inconsistency and Uncertainty

Chemarin, Sophie; Orset, Caroline - 2015

We propose to analyse the hyperbolic discounting preferences effect on the innovator's research investment decision … strengthens this ignorance strategy. Finally, we investigate the impact of existing liability rules on the innovator's decision to …

Persistent link: https://www.econbiz.de/10014216521

An Information-Theoretical Analysis of Budget-Constrained Nonpoint Source Pollution Control

Kaplan, Jonathan D.; Howitt, Richard E.; Farzin, Y. Hossein - 2014

This paper analyses budget-constrained, nonpoint source (NPS) pollution control with costly information acquisition and learning. To overcome the inherent ill-posed statistical problem in NPS pollution data the sequential entropy filter is applied to the sediment load management program for...

Persistent link: https://www.econbiz.de/10014143901

Searching for information

Han, Jungsuk; Sangiorgi, Francesco - 2015

This paper provides a microfounded information acquisition technology based on a simple framework with information search. When searchable information is limited, an agent encounters increasingly more redundant information in his search for new information. Redundancy slows down the learning...

Persistent link: https://www.econbiz.de/10010529422

Discrete Actions in Information-Constrained Tracking Problems

Matějka, Filip - 2011

Optimal actions of an agent facing a Shannon capacity constraint on the translation of an uncertain signal into an action can easily turn out to be discretely distributed, even when the objective function and the initial distribution of uncertainty contain no discrete elements. We show this...

Persistent link: https://www.econbiz.de/10013122444

Rational Inattention and Migration Decisions

Bertoli, Simone - 2020

Acquiring information about destinations can be costly for migrants. We model information frictions in the rational inattention framework and obtain a closed-form expression for a migration gravity equation that we bring to the data. The model predicts that ows from countries with a higher cost...

Persistent link: https://www.econbiz.de/10012838467

Rational Inattention Via Ignorance Equivalence

Armenter, Roc - 2020

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/10012843760

Complementary Information and Learning Traps

Liang, Annie - 2019

We develop a model of social learning from complementary information: Short-lived agents sequentially choose from a large set of flexibly correlated information sources for prediction of an unknown state, and information is passed down across periods. Will the community collectively acquire the...

Persistent link: https://www.econbiz.de/10012900782

Belief Updating and the Demand for Information

Ambuehl, Sandro - 2019

How do individuals value noisy information that guides economic decisions? In our laboratory experiment, we find that individuals under-react to increasing the informativeness of a signal, thus undervalue high-quality information, and that they disproportionately prefer information that may...

Persistent link: https://www.econbiz.de/10012904826

The Demand for, and Avoidance of, Information

Golman, Russell - 2020

We propose and experimentally test a new theory of information seeking and avoidance. Beyond the conventional desire … for information as an input to decision making, people are driven by curiosity, which is a desire to fill information gaps … theory: people display stronger demand for information when it seems more important, when it is more salient, and when it has …

Persistent link: https://www.econbiz.de/10012857190

Dynamic Market Participation and Endogenous Information Aggregation

Yu, Edison G. - 2018

This paper studies information aggregation in financial markets with recurrent investor exit and entry. I consider a dynamic general equilibrium model of asset trading with private information and collateral constraints. Investors differ in their aversion to Knightian uncertainty: When...

Persistent link: https://www.econbiz.de/10012933663