Experimental Tests of Rational Inattention
Bibliographic Data
| ID | 10172073 |
|---|---|
| Authors | Mark Dean (0000-0001-7110-5254, Columbia University), Nathaniel Neligh (0000-0002-7483-8020, University of Tennessee at Knoxville) |
| Year | 2023 |
| Volume | 131 |
| Issue | 12 |
| Pages | 3415-3461 |
| Publication date | 2023-03-28 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/725174 |
| OpenAlex | W4361214457 |
| Language | EN |
| Citations received | 8 |
| References cited | 39 |
We use laboratory experiments to test models of rational inattention, in which people acquire information to maximize utility net of information costs. We show that subjects adjust their attention in response to changes in incentives, in line with the rational inattention model. However, our results are qualitatively inconsistent with information costs that are linear in Shannon entropy, as is often assumed in applied work. Our data are best fit by a generalization of the Shannon model, which allows for a more flexible response to incentives and for some states of the world to be harder to distinguish than others
Econometrics · Economics · Entropy (arrow of time · Generalization · Incentive · Microeconomics · Rational analysis · Computer Science · Decision-Making and Behavioral Economics · Experimental Behavioral Economics Studies · Mathematics · Neural and Behavioral Psychology Studies · Psychology
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| Unique citing works | 8 |
|---|---|
| Citations per year | 2,67 |
| Citation span | 2023 - 2025 (3) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 8 |