Switching Cost Models as Hypothesis Tests

We relate models based on costs of switching beliefs (e.g. due to inattention) to hypothesis tests. Specifically, for an inference problem with a penalty for mistakes and for switching the inferred value, a band of inaction is optimal. We show this band is equivalent to a confidence interval, and therefore to a two-sided hypothesis test

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Year of publication:	2018
Authors:	Cohen, Samuel N.
Other Persons:	Henckel, Timo (contributor) ; Menzies, Gordon Douglas (contributor) ; Muhle-Karbe, Johannes (contributor) ; Zizzo, Daniel John (contributor)
Publisher:	[2018]: [S.l.] : SSRN
Subject:	Wechselverhalten \| Switching behaviour \| Statistischer Test \| Statistical test \| Schätztheorie \| Estimation theory

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