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On Rational Inattention with Arbitrary Choice Sets

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  • Chris Engh

Abstract

This paper points out that rational inattention is a nested regularized optimal transport problem. We use entropic optimal transport to establish the main results in Matejka and McKay (2015) and Caplin, Dean, and Leahy (2019) and extend them to arbitrary choice sets.

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  • Chris Engh, 2026. "On Rational Inattention with Arbitrary Choice Sets," Papers 2603.15548, arXiv.org.
    • Handle: RePEc:arx:papers:2603.15548
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    References listed on IDEAS

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    1. Andrew Caplin & Mark Dean, 2013. "Behavioral Implications of Rational Inattention with Shannon Entropy," NBER Working Papers 19318, National Bureau of Economic Research, Inc.
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