Rational Inattention, Competitive Supply, and Psychometrics / Andrew Caplin, Dániel Csaba, John Leahy, Oded Nov.

Format:

Book

Author/Creator:

Caplin, Andrew.

Contributor:

National Bureau of Economic Research.

Csaba, Dániel.

Leahy, John.

Nov, Oded.

Series:

Working Paper Series (National Bureau of Economic Research) no. w25224.

NBER working paper series no. w25224

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2018.

Summary:

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.

Notes:

Print version record

November 2018.