Costly Information Acquisition : Experimental Analysis of a Boundedly Rational Model

  title={Costly Information Acquisition : Experimental Analysis of a Boundedly Rational Model},
  author={Xavier Gabaix and David Laibson and GUILLERMO MOLOCHE and Stephen Weinberg},
The directed cognition model assumes that agents use partially myopic option-value calculations to select their next cognitive operation. The current paper tests this model by studying information acquisition in two experiments. In the first experiment, information acquisition has an explicit financial cost. In the second experiment, information acquisition is costly because time is scarce. The directed cognition model successfully predicts aggregate information acquisition patterns in these… CONTINUE READING
Highly Influential
This paper has highly influenced 14 other papers. REVIEW HIGHLY INFLUENTIAL CITATIONS


Publications referenced by this paper.
Showing 1-10 of 23 references

Shrouded Attributes, Consumer Myopia, and Information Suppression in Competitive Markets.

  • Gabaix, Xavier, Laibson, David
  • Quarterly Journal of Economics,
  • 2006

Better Heuristics for Economic Search : Experimental and Simulation Evidence

  • Philip Moon, Martin
  • Journal of Behavioral Decision Making
  • 2005

The illusion of conscious will

  • Wegner, M Daniel
  • 2002

“ Consumer Search Behavior and Sunk Costs

  • A. Carl
  • Journal of Economic Behavior and Organization
  • 2002

Similar Papers

Loading similar papers…