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Discrete Choice and Rational Inattention : A General Equivalence Result

Fosgerau, Mogens - 2020

This paper establishes a general equivalence between discrete choice and rational inattention models. Matejka and McKay (2015) showed that when information costs are modelled using the Shannon entropy, the choice probabilities in the rational inattention (RI) model take the multinomial logit...

Persistent link: https://www.econbiz.de/10012854838

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

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

Rationally inattentive consumer : an experiment

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

reduce uncertainty about income by acquiring signals about it. The informativeness of the signals directly relates to the … of the theory: 1) Subjects optimally make stochastic consumption choices; 2) They respond to incentives and changes in …

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

Dogit model and rational inattention

Nchare, Karim - In: Economics letters 205 (2021), pp. 1-3

Persistent link: https://www.econbiz.de/10013202937

Rational inattention as an empirical framework for discrete choice and consumer-welfare evaluation

Joo, Joonhwi - In: Journal of marketing research 60 (2023) 2, pp. 278-298

Persistent link: https://www.econbiz.de/10014233890

Stochastic choice and rational inattention

Lin, Yi-Hsuan - In: Journal of economic theory 202 (2022), pp. 1-43

Persistent link: https://www.econbiz.de/10013373398

The Lexicon and Grammar of Affect-as-Information in Consumer Decision Making : The GAIM

Pham, Michel Tuan - 2011

This chapter examines how the original tenets of the affect-as-information hypothesis can be extended to explain a wide range of judgment phenomena, especially with respect to consumer decision making. To this end, research within social psychology as well as research from other fields such as...

Persistent link: https://www.econbiz.de/10014218375

Promotion and Prevention in Consumer Decision Making : State of the Art and Theoretical Propositions

Pham, Michel Tuan; Higgins, E. Tory - 2011

The purpose of this chapter is to discuss how regulatory focus theory, a theory of motivation and self-regulation, can … theory, which proposes a fundamental distinction between two modes of self-regulation called promotion and prevention … traditional stages of the decision making process postulated by standard consumer behavior theory (i.e., problem recognition …

Persistent link: https://www.econbiz.de/10014029073

Search Costs in Consumer Product Choice : Does Delaying the Provision of Information Increase Choice Efficiency?

Sonntag, Axel - 2013

Using online price comparison and shopping platforms makes experiencing slow connections, lags and waiting times for information an unfortunate reality. However, little attention has been paid to analyzing the effects of delayed provision of information on product choice behavior. In this...

Persistent link: https://www.econbiz.de/10013082980