We introduce an information provision experiment into a standard dynamic rational inattention model. We derive analytical results about how the treatment effect varies with characteristics of the environment and the individual. We use these results to discuss findings in the empirical literature...

Economic narratives are pervasive in the public discourse and can shape individual behavior. But so far we know very little about whether households actually demand and value narratives as information. We combine a comprehensive expert survey with a large-scale nationally representative...

Economic narratives are pervasive in the public discourse and can shape individual behavior. But so far we know very little about whether households actually demand and value narratives as information. We combine a comprehensive expert survey with a large-scale nationally representative...

We examine a setting of independent private value auctions where bidders can covertly acquire gradual information about their valuations. We demonstrate that a dynamic pivot mechanism implements the rst-best information acquisition and allocation rule. We apply our results to a commonly used...

A researcher allocates a budget of informative tests across multiple unknown attributes to influence a decision-maker. We derive the researcher's equilibrium learning strategy by solving an auxiliary single-player problem. The attribute weights in this problem depend on how much the researcher...

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...

Most studies of gender discrimination consider how male versus female candidates are assessed given otherwise identical information about them. But, in many settings of interest, evaluators have a choice about how much information to acquire about a candidate before making a final assessment. We...

Worldwide, enterprises are hit by disasters such as cyclones and floods. Despite being impacted negatively, most enterprises do not prepare for future disasters. This study aims at understanding the determinants of enterprises' disaster preparedness. It first examines whether specific...

This paper investigates and quantifies citizens' susceptibility to fake news and assesses, using a randomized control trial, the effectiveness of a policy intervention to raise awareness. We find that the average citizen lacks proficiency in identifying fake news and harbors an inflated...

We consider a monopolistic certifier selling certification services to a partially privately informed seller. The certifier can enable the seller to disclose her private information publicly, as well as gather additional market information about the good's quality publicly. We show that the...

Technological progress offers new and promising ways to provide targeted information to consumers and facilitate behavioral change. We conduct a randomized controlled trial with a global supermarket chain and food producer to evaluate the effectiveness of a targeted information intervention that...

We implement a randomized controlled trial to investigate whether students in lower-secondary school more effectively acquire information about potential career paths if this information is preceded by a task that allows students to explore their own interests and the career information is...

Using microdata on stock-level lending positions from German mutual funds, we show that active funds use the equity lending market to obtain information about short sale demand. Funds reduce long positions in response to these demand signals, which allows fund managers to front-run public...

Majority voting is considered an efficient information aggregation mechanism in committee decision-making. We examine if this holds in environments where voters first need to acquire information from sources of varied quality and cost. In such environments, efficiency may depend on free-riding...