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Costly learning under ambiguity

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  • Ozbek, Kemal

Abstract

In this paper, we propose a general model of information acquisition, Costly Bayesian Learning (CBL). Using menu choice framework, we provide an axiomatic characterization of the model, identify its parameters, apply a comparative statics, as well as study special cases of the model. Unlike many prominent models of information acquisition (e.g., the Rational Inattention model), a CBL agent can exhibit uncertainty averse behavior and prefer late resolution of uncertainty.

Suggested Citation

  • Ozbek, Kemal, 2025. "Costly learning under ambiguity," Journal of Mathematical Economics, Elsevier, vol. 116(C).
    • Handle: RePEc:eee:mateco:v:116:y:2025:i:c:s0304406824001393
    DOI: 10.1016/j.jmateco.2024.103079
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