Work

Costly learning under ambiguity

Year: 2024

Type: article

Abstract: In this paper, we propose a general model of information acquisition, Costly Bayesian Learning (CBL). Using menu choice framework, we provide an axiomatic characterization of the model, identify its parameters, apply a comparative statics, as well as study special cases of the model. Unlike many prominent models of information acquisition (e.g., the Rational Inattention model), a CBL agent can exhibit uncertainty averse behavior and prefer late resolution of uncertainty.

Source: Journal of Mathematical Economics

DOI: 10.1016/j.jmateco.2024.103079

Author: Kemal Ozbek

Institution: University of Southampton

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,630

OpenAlex ID: W4405025230

FWCI:

Cites: 31

Cited by:

Related to: 10