DISCRETE CHOICE AND RATIONAL INATTENTION: A GENERAL EQUIVALENCE RESULT

• 成果类型: Article
• 署名作者: Fosgerau, Mogens; Melo, Emerson; De Palma, Andre; Shum, Matthew
• 署名单位: University of Copenhagen; Indiana University System; Indiana University Bloomington; CY Cergy Paris Universite; Institut Polytechnique de Paris; ENSAE Paris; California Institute of Technology
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12469
• 发表日期: 2020
• 页码: 1569-1589
• 关键词: models; identification; INFORMATION

摘要

This article establishes a general equivalence between discrete choice and rational inattention models. Matejka and McKay (2015) showed that when information costs are modeled using the Shannon entropy, the choice probabilities in the rational inattention (RI) model take the multinomial logit form. We show that, for one given prior over states, RI choice probabilities may take the form of any additive random utility discrete choice model (ARUM) when the information cost is a Bregman information, a class defined in this article. The prior information of the rationally inattentive agent is summarized in a constant vector of utilities in the corresponding ARUM.