Rational Inattention, Competitive Supply, and Psychometrics
67 Pages Posted: 5 Nov 2018 Last revised: 4 Jun 2023
Date Written: November 2018
Abstract
We introduce a simple method of recovering attention costs from choice data. Our method rests on a precise analogy with production theory. Costs of attention determine consumer demand and consumer welfare just as a competitive firm's technology determines its supply curve and profits. We implement our recovery method experimentally, outline applications, and link our work to the broader literature on inattention and mistaken decisions.
Suggested Citation: Suggested Citation
Caplin, Andrew and Csaba, Dániel and Leahy, John and Nov, Oded, Rational Inattention, Competitive Supply, and Psychometrics (November 2018). NBER Working Paper No. w25224, Available at SSRN: https://ssrn.com/abstract=3278524
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.