Rationally Inattentive Preferences

Revealed Preference, Rational Inattention, and Costly Information Acquisition

“…As detailed in Section V, our paper is most closely related to that of de Oliveira et al (2013), which derives similar results in the setting of choice over menus. Other authors have considered the implications of more specific models of costly information acquisition Ellis 2012;Matějka and McKay 2015).…”

“…12 If we further add to our dataset the choices of the DM over acts before the state of the world is determined (or at least in a situation in which they cannot exert any effort to determine that state) then we can also recover the DM's prior over objective states (again assuming expected utility maximization). This method is pursued in de Oliveira et al (2013). 13 A second approach is to directly identify testable implications when utility, prior beliefs, and information costs are all unobserved.…”

On the economics of superabundant information and scarce attention

“…Sims (1998Sims ( , 2003Sims ( , 2005 was the first to formalize the goal-driven attention allocation problem, using the entropy from Shannon's information theory as the essential measure of informativeness of a channel. 38 The approach of De Oliviera et al (2013) adds a decision-theoretic foundation to this literature, which we shall explain briefly.…”

When Perfectionism Becomes Willpower

“…The first is technical, since we connect a well-established literature on subdifferential and -subdifferential calculus (Zalinescu, 2002) to models of choice among menus. The machinery developed in this work and the techniques developed in subdifferential calculus can be readily applied to other models of choice among menus, for example, those relaxing the independence axiom (Ergin and Sarver, 2010;Noor and Takeoka, 2015) and in different areas, such as the menu-approach to ambiguity (Ahn, 2008;Gajdos et al, 2008) and rational inattention (De Oliveira et al, 2013;Pennesi, 2015).…”