scholarly journals Revealed Preference, Rational Inattention, and Costly Information Acquisition

2014 ◽  
Author(s):  
Andrew Caplin ◽  
Mark Dean
Keyword(s):  
Information Acquisition ◽  
Revealed Preference ◽  
Rational Inattention ◽  
Costly Information

scholarly journals Revealed Preference, Rational Inattention, and Costly Information Acquisition

2015 ◽  
Vol 105 (7) ◽  
pp. 2183-2203 ◽  
Author(s):  
Andrew Caplin ◽  
Mark Dean
Keyword(s):  
General Model ◽  
Information Acquisition ◽  
Revealed Preference ◽  
Preference Test ◽  
Information Costs ◽  
Choice Data ◽  
Rational Inattention ◽  
Costly Information ◽  
Trade Off ◽  
Expected Benefits

Apparently mistaken decisions are ubiquitous. To what extent does this reflect irrationality, as opposed to a rational trade-off between the costs of information acquisition and the expected benefits of learning? We develop a revealed preference test that characterizes all patterns of choice “mistakes” consistent with a general model of optimal costly information acquisition and identify the extent to which information costs can be recovered from choice data. (JEL D11, D81, D83)

Costly information acquisition under horizontal competition

2018 ◽  
Vol 46 (4) ◽  
pp. 418-423
Author(s):  
Qi Fu ◽  
Yongquan Li ◽  
Kaijie Zhu
Keyword(s):  
Information Acquisition ◽  
Costly Information ◽  
Horizontal Competition

Product Proliferation under Rational Inattention: Application to Health Insurance

2021 ◽  
Vol 111 ◽  
pp. 554-559
Author(s):  
Zach Y. Brown ◽  
Jihye Jeon
Keyword(s):  
Health Insurance ◽  
Prescription Drug ◽  
Market Share ◽  
Information Acquisition ◽  
Rational Inattention ◽  
Drug Insurance ◽  
Acquisition Costs ◽  
Using Data ◽  
Product Proliferation ◽  
To Receive

In markets with complicated products such as insurance, why do firms offer many products even when consumers appear to receive little benefit? We show that when consumers face information acquisition costs, firms may have an incentive to introduce many undifferentiated products. This allows firms to gain market share and increase markups. We document initial evidence consistent with the model using data from Medicare prescription drug insurance. Insurers that offer more duplicate or similar plans have higher-cost plans. These results suggest a role for policymakers to restrict product proliferation in markets with complicated products.

scholarly journals Costly Information Acquisition, Social Networks, and Asset Prices: Experimental Evidence

2019 ◽  
Vol 74 (4) ◽  
pp. 1975-2010 ◽  
Author(s):  
EDWARD HALIM ◽  
YOHANES E. RIYANTO ◽  
NILANJAN ROY
Keyword(s):  
Social Networks ◽  
Experimental Evidence ◽  
Information Acquisition ◽  
Asset Prices ◽  
Costly Information

Data-Driven Online Recommender Systems with Costly Information Acquisition

2021 ◽  
pp. 1-1
Author(s):  
Onur Atan ◽  
Saeed Ghoorchian ◽  
Setareh Maghsudi ◽  
Mihaela van der Schaar Schaar
Keyword(s):  
Recommender Systems ◽  
Information Acquisition ◽  
Data Driven ◽  
Costly Information
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