Počet záznamů: 1
Discrete actions in information-constrained decision problems
- 1.
SYSNO ASEP 0510576 Druh ASEP J - Článek v odborném periodiku Zařazení RIV J - Článek v odborném periodiku Poddruh J Článek ve WOS Název Discrete actions in information-constrained decision problems Tvůrce(i) Jung, J. (US)
Kim, J. H. (US)
Matějka, Filip (NHU-N) RID
Sims, CH. A. (US)Zdroj.dok. Review of Economic Studies. - : Oxford University Press - ISSN 0034-6527
Roč. 86, č. 6 (2019), s. 2643-2667Poč.str. 28 s. Jazyk dok. eng - angličtina Země vyd. GB - Velká Británie Klíč. slova rational inattention ; information theory ; decision theory Vědní obor RIV AH - Ekonomie Obor OECD Economic Theory Způsob publikování Open access Institucionální podpora NHU-N - RVO:67985998 UT WOS 000498169800010 EID SCOPUS 85074748253 DOI 10.1093/restud/rdz011 Anotace Individuals are constantly processing external information and translating it into actions. This draws on limited resources of attention and requires economizing on attention devoted to signals related to economic behaviour. A natural measure of such costs is based on Shannon’s “channel capacity”. Modelling economic agents as constrained by Shannon capacity as they process freely available information turns out to imply that discretely distributed actions, and thus actions that persist across repetitions of the same decision problem, are very likely to emerge in settings that without information costs would imply continuously distributed behaviour. We show how these results apply to the behaviour of an investor choosing portfolio allocations, as well as to some mathematically simpler “tracking” problems that illustrate the mechanism. Trying to use costs of adjustment to explain “stickiness” of actions when interpreting the behaviour in our economic examples would lead to mistaken conclusions. Pracoviště Národohospodářský ústav Kontakt Tomáš Pavela, pavela@cerge-ei.cz, Tel.: 224 005 122 Rok sběru 2020 Elektronická adresa http://hdl.handle.net/11104/0301013
Počet záznamů: 1