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dc.contributor.authorde Oliveira, Henrique
dc.contributor.authorDenti, Tommaso
dc.contributor.authorMihm, Maximilian
dc.contributor.authorOzbek, Kemal
dc.identifier.citationde Oliveira , H , Denti , T , Mihm , M & Ozbek , K 2017 , ' Rationally inattentive preferences and hidden information costs ' , Theoretical Economics , vol. 12 , no. 2 , pp. 621-654 .
dc.identifier.otherPURE: 240871371
dc.identifier.otherPURE UUID: e7912d3c-3bbe-450f-80e0-f70061d19c4d
dc.identifier.otherScopus: 85019944081
dc.identifier.otherORCID: /0000-0003-3265-233X/work/33547623
dc.identifier.otherWOS: 000402522900007
dc.description.abstractWe show how information acquisition costs can be identified using observable choice data. Identifying information costs from behavior is especially relevant when these costs depend on factors–such as time, effort and cognitive resources–that are difficult to observe directly, as in models of rational inattention. Using willingness-to-pay data for opportunity sets–which require more or less information to make choices–we establish a set of canonical properties that are necessary and sufficient to identify information costs. We also provide an axiomatic characterization of the induced rationally inattentive preferences, and show how they reveal the amount of information a decision maker acquires.
dc.relation.ispartofTheoretical Economicsen
dc.rightsCopyright © 2017 The Authors. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes.en
dc.subjectInformation costsen
dc.subjectBlackwell orderen
dc.subjectInformation acquisitionen
dc.subjectMenu choiceen
dc.subjectRational inattentionen
dc.subjectHB Economic Theoryen
dc.titleRationally inattentive preferences and hidden information costsen
dc.typeJournal articleen
dc.description.versionPublisher PDFen
dc.contributor.institutionUniversity of St Andrews.School of Economics and Financeen
dc.description.statusPeer revieweden

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