IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1910.07015.html
   My bibliography  Save this paper

Dynamically Aggregating Diverse Information

Author

Listed:
  • Annie Liang
  • Xiaosheng Mu
  • Vasilis Syrgkanis

Abstract

An agent has access to multiple information sources, each of which provides information about a different attribute of an unknown state. Information is acquired continuously -- where the agent chooses both which sources to sample from, and also how to allocate attention across them -- until an endogenously chosen time, at which point a decision is taken. We provide an exact characterization of the optimal information acquisition strategy under weak conditions on the agent's prior belief about the different attributes. We then apply this characterization to derive new results regarding: (1) endogenous information acquisition for binary choice, (2) strategic information provision by biased news sources, and (3) the dynamic consequences of attention manipulation.

Suggested Citation

  • Annie Liang & Xiaosheng Mu & Vasilis Syrgkanis, 2019. "Dynamically Aggregating Diverse Information," Papers 1910.07015, arXiv.org, revised Apr 2021.
    • Handle: RePEc:arx:papers:1910.07015
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1910.07015
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Easley, David & Kiefer, Nicholas M, 1988. "Controlling a Stochastic Process with Unknown Parameters," Econometrica, Econometric Society, vol. 56(5), pages 1045-1064, September.
    2. Drew Fudenberg & Philipp Strack & Tomasz Strzalecki, 2018. "Speed, Accuracy, and the Optimal Timing of Choices," American Economic Review, American Economic Association, vol. 108(12), pages 3651-3684, December.
    3. Philippe Aghion & Patrick Bolton & Christopher Harris & Bruno Jullien, 1991. "Optimal Learning by Experimentation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(4), pages 621-654.
    4. Godfrey Keller & Sven Rady & Martin Cripps, 2005. "Strategic Experimentation with Exponential Bandits," Econometrica, Econometric Society, vol. 73(1), pages 39-68, January.
    5. Jakub Steiner & Colin Stewart & Filip Matějka, 2017. "Rational Inattention Dynamics: Inertia and Delay in Decision‐Making," Econometrica, Econometric Society, vol. 85, pages 521-553, March.
    6. Yeon-Koo Che & Konrad Mierendorff, 2019. "Optimal Dynamic Allocation of Attention," American Economic Review, American Economic Association, vol. 109(8), pages 2993-3029, August.
    7. Olivier Gossner & Jakub Steiner & Colin Stewart, 2021. "Attention Please!," Econometrica, Econometric Society, vol. 89(4), pages 1717-1751, July.
    8. Sanjurjo, Adam, 2017. "Search with multiple attributes: Theory and empirics," Games and Economic Behavior, Elsevier, vol. 104(C), pages 535-562.
    9. Umberto Garfagnini & Bruno Strulovici, 2016. "Social Experimentation with Interdependent and Expanding Technologies," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(4), pages 1579-1613.
    10. Yang, Ming, 2015. "Coordination with flexible information acquisition," Journal of Economic Theory, Elsevier, vol. 158(PB), pages 721-738.
    11. Steven Callander, 2011. "Searching and Learning by Trial and Error," American Economic Review, American Economic Association, vol. 101(6), pages 2277-2308, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bottan, Daria & McKee, Douglas & Orlov, George & McDougall, Anna, 2022. "Racial and gender achievement gaps in an economics classroom," International Review of Economics Education, Elsevier, vol. 40(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Annie Liang & Xiaosheng Mu & Vasilis Syrgkanis, 2021. "Dynamically Aggregating Diverse Information," Working Papers 2021-43, Princeton University. Economics Department..
    2. Annie Liang & Xiaosheng Mu & Vasilis Syrgkanis, 2022. "Dynamically Aggregating Diverse Information," Econometrica, Econometric Society, vol. 90(1), pages 47-80, January.
    3. Annie Liang & Xiaosheng Mu & Vasilis Syrgkanis, 2019. "Optimal and Myopic Information Acquisition," Working Papers 2019-25, Princeton University. Economics Department..
    4. Annie Liang & Xiaosheng Mu & Vasilis Syrgkanis, 2019. "Dynamically Aggregating Diverse Information," PIER Working Paper Archive 19-005, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    5. Hébert, Benjamin & Woodford, Michael, 2023. "Rational inattention when decisions take time," Journal of Economic Theory, Elsevier, vol. 208(C).
    6. Umberto Garfagnini & Bruno Strulovici, 2012. "Social Learning and Innovation Cycles (revision of DP#1516, The Dynamics of Innovation)," Discussion Papers 1546, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    7. Chen, Yi, 2020. "A revision game of experimentation on a common threshold," Journal of Economic Theory, Elsevier, vol. 186(C).
    8. Th'eo Durandard, 2023. "Dynamic delegation in promotion contests," Papers 2308.05668, arXiv.org.
    9. Weijie Zhong, 2022. "Optimal Dynamic Information Acquisition," Econometrica, Econometric Society, vol. 90(4), pages 1537-1582, July.
    10. Mason, Robin & Välimäki, Juuso, 2011. "Learning about the arrival of sales," Journal of Economic Theory, Elsevier, vol. 146(4), pages 1699-1711, July.
    11. Weijie Zhong, 2018. "The Indirect Cost of Information," Papers 1809.00697, arXiv.org, revised Apr 2020.
    12. Philippe Jehiel & Jakub Steiner, 2020. "Selective Sampling with Information-Storage Constraints [On interim rationality, belief formation and learning in decision problems with bounded memory]," The Economic Journal, Royal Economic Society, vol. 130(630), pages 1753-1781.
    13. Lindbeck, Assar & Weibull, Jörgen, 2020. "Delegation of investment decisions, and optimal remuneration of agents," European Economic Review, Elsevier, vol. 129(C).
    14. Cujean, Julien & Bustamante, Maria Cecilia & Frésard, Laurent, 2019. "Knowledge Cycles and Corporate Investment," CEPR Discussion Papers 14152, C.E.P.R. Discussion Papers.
    15. Th'eo Durandard & Matteo Camboni, 2024. "Under Pressure: Comparative Statics for Optimal Stopping Problems in Nonstationary Environments," Papers 2402.06999, arXiv.org.
    16. Bartosz Maćkowiak & Filip Matějka & Mirko Wiederholt, 2023. "Rational Inattention: A Review," Journal of Economic Literature, American Economic Association, vol. 61(1), pages 226-273, March.
    17. Doruk Cetemen & Can Urgun & Leeat Yariv, 2023. "Collective Progress: Dynamics of Exit Waves," Journal of Political Economy, University of Chicago Press, vol. 131(9), pages 2402-2450.
    18. Jason Delaney & Sarah Jacobson & Thorsten Moenig, 2020. "Preference discovery," Experimental Economics, Springer;Economic Science Association, vol. 23(3), pages 694-715, September.
    19. Vettas, Nikolaos, 1997. "Entry and exit under demand uncertainty," Economics Letters, Elsevier, vol. 57(2), pages 227-234, December.
    20. Hans M. Amman & Marco Paolo Tucci, 2018. "How active is active learning: value function method vs an approximation method," Department of Economics University of Siena 788, Department of Economics, University of Siena.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:1910.07015. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.