Rational Inattention, Optimal Consideration Sets, and Stochastic Choice

• 成果类型: Article
• 署名作者: Caplin, Andrew; Dean, Mark; Leahy, John
• 署名单位: New York University; Columbia University; University of Michigan System; University of Michigan; National Bureau of Economic Research
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdy037
• 发表日期: 2019
• 页码: 1061-1094
• 关键词: limited attention; INFORMATION; MODEL; search; time

摘要

We unite two basic approaches to modelling limited attention in choice by showing that the rational inattention model implies the formation of consideration sets-only a subset of the available alternatives will be considered for choice. We provide necessary and sufficient conditions for rationally inattentive behaviour which allow the identification of consideration sets. In simple settings, chosen options are those that are best on a stand-alone basis. In richer settings, the consideration set can only be identified holistically. In addition to payoffs, prior beliefs impact consideration sets. Linear inequalities identify all priors consistent with each possible consideration set.