Narrow search
Showing 1 - 10 of 89,519
Cover Image
The devil you know : rational inattention to discrete choices when prior information matters
Pellegrino, Bruno - 2023
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 have access to a flexible, costly information acquisition technology (RI-logit … decision maker's prior information to be asymmetric across choices. In this paper, I solve the RI-logit model analytically for …
Persistent link: https://www.econbiz.de/10014247316
Cover Image
Optimal Dynamic Information Acquisition
Zhong, Weijie - 2018
In this paper, I studied an information acquisition problem: a decision maker acquires information about payoff relevant states to facilitate decision making. My primary focus is on flexibility: the decision maker can choose any dynamic signal process as information source, subject to cost on...
Persistent link: https://www.econbiz.de/10012933065
Cover Image
The Devil You Know : Rational Inattention to Discrete Choices When Prior Information Matters
Pellegrino, Bruno - 2023
In the seminal rational inattention model of Matĕjka and McKay (2015), logit demand arises from the discrete choice of … (RI-logit). A notable limitation of this powerful framework is the lack of known general closed-form solutions, allowing … the decision maker’s prior information to differ across choices. In this paper, I solve the RI-logit model analytically …
Persistent link: https://www.econbiz.de/10014358846
Cover Image
The Devil You Know : Rational Inattention to Discrete Choices when Prior Information Matters
Pellegrino, Bruno - 2023
In the seminal rational inattention model of Matêjka and McKay (2015), logit demand arises from the discrete choice of … (RI-logit). A notable limitation of this powerful framework is the lack of known general closed-form solutions, allowing … the decision maker’s prior information to differ across choices. In this paper, I solve the RI-logit model analytically …
Persistent link: https://www.econbiz.de/10014348996
Cover Image
SElf-Awareness, Uncertainty, and Markets with Overconfidence
Hvide, H.K. - Norges Handelshøyskole (NHH) - 1997
perfect awareness assumption. In the second part we ask whether uncertainty about oneself needs to be modeled differently than … uncertainty about the world, and argue that with the exception of a disturbing circularity aspect, the answer is no. …
Persistent link: https://www.econbiz.de/10005487102
Cover Image
Choosing what to pay attention to
Fulton, Chad - In: Theoretical economics : TE ; an open access journal in … 17 (2022) 1, pp. 153-184
This paper studies static rational inattention problems with multiple actions and multiple shocks. We solve for the optimal signals chosen by agents and provide tools to interpret information processing. By relaxing restrictive assumptions previously used to gain tractability, we allow agents...
Persistent link: https://www.econbiz.de/10012806924
Cover Image
Rationally inattentive preferences and hidden information costs
Oliveira, Henrique de; Denti, Tommaso; Mihm, Maximilian; … - In: Theoretical economics : TE ; an open access journal in … 12 (2017) 2, pp. 621-654
We show how information acquisition costs can be identified using observable choice data. Identifying information costs from behavior is especially relevant when these costs depend on factors-such as time, effort, and cognitive resources-that are difficult to observe directly, as in models of...
Persistent link: https://www.econbiz.de/10011705099
Cover Image
Geometric methods for finite rational inattention
Armenter, Roc; Müller-Itten, Michèle; Stangebye, … - In: Quantitative economics : QE ; journal of the … 15 (2024) 1, pp. 115-144
We present a geometric approach to the finite Rational Inattention (RI) model, recasting it as a convex optimization problem with reduced dimensionality that is well suited to numerical methods. We provide an algorithm that outperforms existing RI computation techniques in terms of both speed...
Persistent link: https://www.econbiz.de/10014496939
Cover Image
Rationally inattentive preferences and hidden information costs
de Oliveira, Henrique; Denti, Tommaso; Mihm, Maximilian; … - In: Theoretical Economics 12 (2017) 2, pp. 621-654
We show how information acquisition costs can be identified using observable choice data. Identifying information costs from behavior is especially relevant when these costs depend on factors-such as time, effort, and cognitive resources-that are difficult to observe directly, as in models of...
Persistent link: https://www.econbiz.de/10012010080
Cover Image
Geometric methods for finite rational inattention
Armenter, Roc; Müller-Itten, Michèle; Stangebye, … - In: Quantitative Economics 15 (2024) 1, pp. 115-144
We present a geometric approach to the finite Rational Inattention (RI) model, recasting it as a convex optimization problem with reduced dimensionality that is well suited to numerical methods. We provide an algorithm that outperforms existing RI computation techniques in terms of both speed...
Persistent link: https://www.econbiz.de/10014537020