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Costly Information Acquisition

Author

Listed:
  • Liu, Ce

    (Michigan State University, Department of Economics)

  • Chambers, Christopher

    (Georgetown University)

  • Rehbeck, John

    (Ohio State University)

Abstract

We provide revealed preference characterizations for choices made under various forms of costly information acquisition. We examine nonseparable, multiplicative, and constrained costly information acquisition. In particular, this allows the possibility of unknown time delay for acquiring information. The techniques we use parallel the duality properties in the standard consumer problem.

Suggested Citation

  • Liu, Ce & Chambers, Christopher & Rehbeck, John, 2019. "Costly Information Acquisition," Working Papers 2019-9, Michigan State University, Department of Economics.
    • Handle: RePEc:ris:msuecw:2019_009
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Roy Allen & Pawel Dziewulski & John Rehbeck, 2019. "Revealed statistical consumer theory," Working Paper Series 1119, Department of Economics, University of Sussex Business School.
    2. Mogens Fosgerau & Emerson Melo & André de Palma & Matthew Shum, 2020. "Discrete Choice And Rational Inattention: A General Equivalence Result," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(4), pages 1569-1589, November.
    3. Aoyama, Tomohito, 2020. "Response time and revealed information structure," Discussion paper series HIAS-E-101, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    4. Dewan, Ambuj & Neligh, Nathaniel, 2020. "Estimating information cost functions in models of rational inattention," Journal of Economic Theory, Elsevier, vol. 187(C).
    5. António Afonso & Krzysztof Beck & Karen Jackson, 2022. "Determinants of stock market correlations. Accounting for model uncertainty and reverse causality in a large panel setting," Working Papers REM 2022/0246, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    6. Tsakas, Elias, 2020. "Robust scoring rules," Theoretical Economics, Econometric Society, vol. 15(3), July.
    7. Luciano Pomatto & Philipp Strack & Omer Tamuz, 2018. "The Cost of Information: The Case of Constant Marginal Costs," Papers 1812.04211, arXiv.org, revised Feb 2023.
    8. Youichiro Higashi & Kazuya Hyogo & Norio Takeoka, 2020. "Costly Subjective Learning," KIER Working Papers 1040, Kyoto University, Institute of Economic Research.

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    More about this item

    Keywords

    costly information acquisition; rational inattention;

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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