منابع مشابه
Signal Extraction and Rational Inattention∗
In this paper we examine the implications of two theories of informational frictions, signal extraction (SE) and rational inattention (RI), for optimal decisions and economic dynamics within the linear-quadratic-Gaussian (LQG) setting. We first show that if the variance of the noise and channel capacity are fixed exogenously in the SE and RI problems, respectively, the two environments lead to ...
متن کاملCoordination with Rational Inattention
We study information acquisition in a coordination game with incomplete information. To capture the idea that players can exibly decide what information to acquire, we do not impose any physical restriction on feasible information structure. Facing an informational cost measured by reduction of Shannon's entropy, players collect information most relevant to their welfare and are rationally inat...
متن کاملRational Inattention and Aggregate Fluctuations
This paper introduces the rational inattention hypothesis (RI) – that agents process information subject to finite channel constraints – into a stochastic growth model with permanent technology shocks. We find that RI raises consumption volatility relative to output by introducing an endogenous demand shock. Furthermore, it is shown that incorporating RI can provide an additional internal propa...
متن کاملAn Introduction to Rational Inattention
• Another alternative – and this is the one that rational inattention chooses – is to model agents as having only a probability distribution over the true state of the world, instead of knowing the state of the world with certainty. For instance, imagine looking at a thermometer or yourwatch:While being – inmost cases, at least – highly correlated with the actual temperature or time, respective...
متن کاملTravel time variability and rational inattention
This paper sets up a rational inattention model for the choice of departure time for a traveler facing random travel time. The traveler chooses how much information to acquire about the travel time outcome before choosing departure time. This reduces the cost of travel time variability compared to models in which the information is exogenously fixed .
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ژورنال
عنوان ژورنال: The Journal of Law and Economics
سال: 2014
ISSN: 0022-2186,1537-5285
DOI: 10.1086/676964