Work

Rational Inattention, Competitive Supply, and Psychometrics

Year: 2018

Type: report

Abstract: We introduce a simple method of recovering attention costs from choice data.Our method rests on a precise analogy with production theory.Costs of attention determine consumer demand and consumer welfare just as a competitive firm's technology determines its supply curve and profits.We implement our recovery method experimentally, outline applications, and link our work to the broader literature on inattention and mistaken decisions.

Source: National Bureau of Economic Research

DOI: 10.3386/w25224

Authors: Andrew Caplin, Dániel Csaba, John Leahy, Oded Nov

Institutions: National Bureau of Economic Research, University of Michigan, New York University

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3124258157

Cites: 61

Cited by: 3

Related to: 10