IDEAS home Printed from https://ideas.repec.org/a/ucp/jpolec/doi10.1086-725174.html
   My bibliography  Save this article

Experimental Tests of Rational Inattention

Author

Listed:
  • Mark Dean
  • Nathaniel Neligh

Abstract

We use laboratory experiments to test models of rational inattention, in which people acquire information to maximize utility net of information costs. We show that subjects adjust their attention in response to changes in incentives, in line with the rational inattention model. However, our results are qualitatively inconsistent with information costs that are linear in Shannon entropy, as is often assumed in applied work. Our data are best fit by a generalization of the Shannon model, which allows for a more flexible response to incentives and for some states of the world to be harder to distinguish than others.

Suggested Citation

  • Mark Dean & Nathaniel Neligh, 2023. "Experimental Tests of Rational Inattention," Journal of Political Economy, University of Chicago Press, vol. 131(12), pages 3415-3461.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/725174
    DOI: 10.1086/725174
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/725174
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/725174
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/725174?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    Citations

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


    Cited by:

    1. Hui-Kuan Chung & Nick Doren & Lasse Mononen & Mia Lu & Marcus Grueschow & Helen Hayward Könnecke & Alexander Jetter & Boris B. Quednow & Nick Netzer & Philippe N. Tobler, 2025. "Improving rationality by increasing attention," ECON - Working Papers 476, Department of Economics - University of Zurich.
    2. Andrew Caplin & Daniel Martin & Philip Marx, 2025. "Rationalizable learning," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 80(1), pages 171-202, August.
    3. Walker-Jones, David, 2025. "Foundation and identification of multi-attribute Shannon entropy," Games and Economic Behavior, Elsevier, vol. 150(C), pages 334-355.
    4. Jamie Hentall-MacCuish, 2024. "Costly attention and retirement," IFS Working Papers W24/59, Institute for Fiscal Studies.
    5. David Almog & Daniel Martin, 2024. "Rational inattention in games: experimental evidence," Experimental Economics, Springer;Economic Science Association, vol. 27(4), pages 715-742, September.
    6. Jiang, Jiajun & Lee, Yi-Tsung & Liu, Yu-Jane & Meng, Juanjuan, 2025. "Inattention and credit card repayment date," Journal of Economic Behavior & Organization, Elsevier, vol. 230(C).
    7. Marta Serra-Garcia, 2025. "The Attention–Information Tradeoff," CESifo Working Paper Series 11885, CESifo.
    8. Egor Bronnikov & Elias Tsakas, 2025. "A robust measure of complexity," Papers 2501.09139, arXiv.org.
    9. Duffy, Sean & Smith, John, 2025. "Stochastic choice and imperfect judgments of line lengths: What is hiding in the noise?," Journal of Economic Psychology, Elsevier, vol. 106(C).
    10. Zhou, Bo & Liu, Ronghui, 2024. "A generalized rationally inattentive route choice model with non-uniform marginal information costs," Transportation Research Part B: Methodological, Elsevier, vol. 189(C).
    11. Yongheng Hu, 2025. "How Big Data Dilutes Cognitive Resources, Interferes with Rational Decision-making and Affects Wealth Distribution ?," Papers 2508.20435, arXiv.org, revised Aug 2025.
    12. Chad Kendall & Ryan Oprea, 2024. "On the complexity of forming mental models," Quantitative Economics, Econometric Society, vol. 15(1), pages 175-211, January.

    More about this item

    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:ucp:jpolec:doi:10.1086/725174. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JPE .

    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.