Coordination with Rational Inattention

@inproceedings{Frankel2011CoordinationWR,
  title={Coordination with Rational Inattention},
  author={David M. Frankel},
  year={2011}
}
We study information acquisition in a coordination game with incomplete information. To capture the idea that players can exibly decide what information to acquire, we do not impose any physical restriction on feasible information structure. Facing an informational cost measured by reduction of Shannon's entropy, players collect information most relevant to… CONTINUE READING