An equivalence between rational inattention problems and complete-information conformity games

C-Tier
Journal: Economics Letters
Year: 2022
Volume: 214
Issue: C

Authors (2)

Ilinov, Pavel (not in RePEc) Jann, Ole (Oxford University)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

We consider two types of models: (i) a rational inattention problem (as known from the literature) and (ii) a conformity game, in which fully informed players find it costly to deviate from average behavior. We show that these problems are equivalent to each other both from the perspective of the participant and the outside observer: Each individual faces identical trade-offs in both situations, and an observer would not be able to distinguish the two models from the choice data they generate. We also establish when individual behavior in the conformity game maximizes welfare.

Technical Details

RePEc Handle
repec:eee:ecolet:v:214:y:2022:i:c:s0165176522000957
Journal Field
General
Author Count
2
Added to Database
2026-01-25