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Uncertain rationality, depth of reasoning and robustness in games with incomplete information

Germano, Fabrizio; Weinstein, Jonathan; Zuazo-Garin, Peio - In: Theoretical economics : TE ; an open access journal in … 15 (2020) 1, pp. 89-122

unique rationalizable action. This paper studies how a wide class of departures from common belief in rationality impact … attach to (n- 1)th-order belief in rationality. We find that Weinstein and Yildiz's discontinuity remains when λn is above an … appropriate threshold for all n, but fails when λn converges to 0. That is, if players' confidence in mutual rationality persists …

Persistent link: https://www.econbiz.de/10012159030

Rational Inattention in Games : Experimental Evidence

Martin, Daniel - 2016

In this paper, I test the predictions of rational inattention theory using a laboratory experiment where one role in a two-player game faces cognitive costs to process information about a payoff-relevant state. I find that subjects who face these unobservable cognitive costs have state-dependent...

Persistent link: https://www.econbiz.de/10014132627

The dynamics of inattention in the (baseball) field

Archsmith, James; Heyes, Anthony; Neidell, Matthew; … - 2021

Recent theoretical and empirical work characterizes attention as a limited resource that decision-makers strategically allocate. There has been less research on the dynamic interdependence of attention: how paying attention now may affect performance later. In this paper, we exploit...

Persistent link: https://www.econbiz.de/10012549756

Evolutionary economics and household behavior

Horioka, Charles - 2014

neoclassical assumption of selfish utility maximization with bounded rationality and satisficing and by incorporating the reaction …

Persistent link: https://www.econbiz.de/10010390070

Evolutionary economics and household behavior

Horioka, Charles - 2014

neoclassical assumption of selfish utility maximization with bounded rationality and satisficing and by incorporating the reaction …

Persistent link: https://www.econbiz.de/10010390395

Rational Inattention Via Ignorance Equivalence

Armenter, Roc; Muller-Itten, Michele; Stangebye, Zachary - 2021

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/10014048696

Rational Inattention with Ambiguity Aversion

Fabbri, Francesco - 2023

We develop a tractable framework incorporating ambiguity aversion into rational inattention. We model uncertainty using smooth ambiguity (Klibanoff, Marinacci, and Mukerji, 2005) and define entropy-based information costs on the predictive prior distribution, which allows us to rewrite the...

Persistent link: https://www.econbiz.de/10014354260

Rational Inattention Via Ignorance Equivalence

Armenter, Roc - 2020

Persistent link: https://www.econbiz.de/10012843760

Rationally Inattentive Preferences

de Oliveira, Henrique - 2017

This paper develops a decision-theoretic framework to study rational inattention (Sims [1998, 2003]). We provide an axiomatic characterization that relates rationally inattentive behavior to attitudes towards flexibility (Kreps [1979]) and temporal resolution of uncertainty (Kreps and Porteus...

Persistent link: https://www.econbiz.de/10012974280

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