A theory of discrete choice with information costs

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2015
Volume: 113
Issue: C
Pages: 34-50

Authors (3)

Cheremukhin, Anton (Federal Reserve Bank of Dallas) Popova, Anna (not in RePEc) Tutino, Antonella (not in RePEc)

Score contribution per author:

0.673 = (α=2.02 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We present a theory of discrete choice with information costs that supports deliberate stochastic choice. We use a unique experimental dataset to distinguish between errors arising from limitations on a decision maker's cognitive abilities and conscious disregard of information. Experimental evidence strongly favors the latter explanation. The data also allows us to directly estimate the shape and size of information costs for individual participants. Furthermore, in line with a dynamic extension of our theory, we find that accumulated knowledge of the environment improves response consistency.

Technical Details

RePEc Handle
repec:eee:jeborg:v:113:y:2015:i:c:p:34-50
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25