Costly Information Acquisition : Experimental Analysis of a Boundedly Rational Model

@inproceedings{Gabaix2006CostlyIA,
  title={Costly Information Acquisition : Experimental Analysis of a Boundedly Rational Model},
  author={Xavier Gabaix and David Laibson and GUILLERMO MOLOCHE and Stephen Weinberg},
  year={2006}
}
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
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