Rational inattention to discrete choices: a new foundation for the multinomial logit model

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F15%3A00443567" target="_blank" >RIV/67985998:_____/15:00443567 - isvavai.cz</a>
Alternative codes found
RIV/00216208:11640/15:00455363
Result on the web
<a href="http://dx.doi.org/10.1257/aer.20130047" target="_blank" >http://dx.doi.org/10.1257/aer.20130047</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1257/aer.20130047" target="_blank" >10.1257/aer.20130047</a>

Result language
angličtina
Original language name
Rational inattention to discrete choices: a new foundation for the multinomial logit model
Original language description
Individuals must often choose among discrete actions with imperfect information about their payoffs. Before choosing, they have an opportunity to study the payoffs, but doing so is costly. This creates new choices such as the number of and types of questions to ask. We model these situations using the rational inattention approach to information frictions. We find that the decision maker's optimal strategy results in choosing probabilistically in line with a generalized multinomial logit model, which depends both on the actions' true payoffs as well as on prior beliefs.
Czech name
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Czech description
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Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
—

Project
<a href="/en/project/GPP402%2F11%2FP236" target="_blank" >GPP402/11/P236: Implications of Rational Inattention</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2015
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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