Rational inattention

From HandWiki
Revision as of 04:19, 7 March 2021 by imported>JMinHep (simplify)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)

In economics, the theory of rational inattention deals with the effects of the cost of information acquisition on decision making. For example, when the information required for a decision is costly to acquire, the decision makers may rationally take decisions based on incomplete information, rather than incurring the cost to get the complete information.[1][2]

See also

References

  1. ↑ Sims, C.A., 2003. Implications of rational inattention. Journal of monetary Economics, 50(3), pp.665-690.
  2. ↑ Sims, C.A., 2010. Rational inattention and monetary economics. Handbook of Monetary Economics, 3, pp.155-181.



Retrieved from "https://handwiki.org/wiki/index.php?title=Rational_inattention&oldid=105779"