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Rationality of Belief or : Why Savage's Axioms are Neither Necessary Nor Sufficient for Rationality, Second Version

Gilboa, Itzhak - 2008

Economic theory reduces the concept of rationality to internal consistency. As far as beliefs are concerned …, rationality is equated with having a prior belief over a quot;Grand State Spacequot;, describing all possible sources of … inherently incapable of describing the formation of prior beliefs. On the other hand, this notion of rationality is too strong …

Persistent link: https://www.econbiz.de/10012722434

Management, Rational or Creative : A Knowledge-Based Discussion

Spender, J.-C. - 2007

Methodological individualism is the doctrine that economic or social phenomena are ultimately grounded in individual knowing and choice. Recently numerous collective concepts have been introduced into our thinking about the firm - absorptive capacity, communities of practice, dynamic...

Persistent link: https://www.econbiz.de/10012730220

Rationalizing Dynamic Choices

de Oliveira, Henrique - 2019

Consider an analyst who observes an agent taking a sequence of actions. The analyst ponders whether the sequence of actions observed could have been taken by a rational, Bayesian agent. Although the analyst observes the chosen actions, he does not have direct access to the agent's information...

Persistent link: https://www.econbiz.de/10012893164

Travel Time Variability and Rational Inattention

Fosgerau, Mogens - 2017

This paper sets up a rational inattention model for the choice of departure time for a traveler facing random travel time. The traveler chooses how much information to acquire about the travel time out-come before choosing departure time. This reduces the cost of travel time variability compared...

Persistent link: https://www.econbiz.de/10012944950

Mind, Rationality, and Cognition : An Interdisciplinary Debate

Chater, Nick - 2017

This article features an interdisciplinary debate and dialogue about the nature of mind, perception, and rationality … biology — offer critiques and commentaries of a target article by Felin, Koenderink, and Krueger: “Rationality, Perception … concerning rationality and the all-seeing-eye argument, including the nature of judgment and reasoning, biases versus heuristics …

Persistent link: https://www.econbiz.de/10012945787

Change and Rationality in Macroeconomics and Finance Theory : A New Rational Expectations Hypothesis

Frydman, Roman - 2015

We call attention to the class of models that serve as the foundation for the rational expectations hypothesis (REH). Models in this class rule out completely any structural change that cannot be fully anticipated with a probabilistic or other quantitative rule. REH models are abstractions of...

Persistent link: https://www.econbiz.de/10013025340

Rational Social Learning by Random Sampling

Smith, Lones - 2013

This paper explores rational social learning in which everyone only sees unordered random samples from the action history. In this model, herds need not occur when the distant past can be sampled. If private signal strengths are unbounded and the past is not over-sampled -- not forever affected...

Persistent link: https://www.econbiz.de/10012711111

Rational Inattention : A Review

Maćkowiak, Bartosz; Matějka, Filip; Wiederholt, Mirko - 2021

We review the recent literature on rational inattention, identify the main theoretical mechanisms, and explain how it helps us understand a variety of phenomena across fields of economics. The theory of rational inattention assumes that agents cannot process all available information, but they...

Persistent link: https://www.econbiz.de/10013222707

Rationally Inattentive Monetary Policy

Bernstein, Joshua; Kamdar, Rupal - 2021

This paper studies optimal monetary policy under rational inattention: the policy maker optimally chooses her information subject to a processing constraint. Our analytical results emphasize how the policy maker’s information choices shape her expectations and the dynamics of the macroeconomy....

Persistent link: https://www.econbiz.de/10013212522

Rationally inattentive consumer : an experiment

Civelli, Andrea; Deck, Cary A.; LeBlanc, Justin D.; … - 2018

This paper presents a laboratory experiment that directly tests the theoretical predictions of consumption choices under rational inattention. Subjects are asked to select consumption when income is random. They can optimally decide to reduce uncertainty about income by acquiring signals about...

Persistent link: https://www.econbiz.de/10012030042