Estimating information cost functions in models of rational inattention

• 成果类型: Article
• 署名作者: Dewan, Ambuj; Neligh, Nathaniel
• 署名单位: New York University; Chapman University System; Chapman University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2020.1050110022
• 发表日期: 2020
• 关键词: Experimental economics; behavioral economics; rational inattention; decision theory

摘要

Models of costly information acquisition have grown in popularity in economics. However, little is known about what form information costs take in reality. We show that under mild assumptions on costs, including continuity and convexity, gross payoffs to decision makers are non-decreasing and continuous in potential rewards. We conduct experiments involving simple perceptual tasks with fine-grained variation in the level of potential rewards. Most subjects exhibit monotonicity in performance with respect to potential rewards, and evidence on continuity and convexity of costs is mixed. Moreover, subjects' behavior is consistent with a subset of cost functions commonly assumed in the literature. (C) 2020 Elsevier Inc. All rights reserved.