On the Distributional Robustness of Finite Rational Inattention Models
In this paper we study a rational inattention model in environments where the decision maker faces uncertainty about the true prior distribution over states. The decision maker seeks to select a stochastic choice rule over a finite set of alternatives that is robust to prior ambiguity. We fully characterize the distributional robustness of the rational inattention model in terms of a tractable concave program. We establish necessary and sufficient conditions to construct robust consideration sets. Finally, we quantify the impact of prior uncertainty, by introducing the notion of \emph{Worst-Case Sensitivity}.
Code (0)
등록된 구현이 없습니다.
Tasks
SensitivitySimilar Papers 제목 키워드 기반
Unifying Revealed Preference and Revealed Rational Inattention
This paper unifies two key results from economic theory, namely, revealed rational inattention and classical revealed preference. Revealed rational inattention tests for rationality of information acquisition for Bayesia…
Robust Predictions in Games with Rational Inattention
We derive robust predictions in games involving flexible information acquisition, also known as rational inattention (Sims 2003). These predictions remain accurate regardless of the specific methods players employ to gat…
A Rational Inattention Theory of Echo Chamber
We develop a rational inattention theory of echo chambers, where players allocate limited attention across biased primary sources and other players to gather information about an uncertain state. The resulting Poisson at…
Solving Dynamic Principal-Agent Problems with a Rationally Inattentive Principal
Principal-Agent (PA) problems describe a broad class of economic relationships characterized by misaligned incentives and asymmetric information. The Principal's problem is to find optimal incentives given the available …
Deep Reinforcement LearningMulti-agent Reinforcement LearningOn the solution of the variational optimisation in the rational inattention framework
I analyse the solution method for the variational optimisation problem in the rational inattention framework proposed by Christopher A. Sims. The solution, in general, does not exist, although it may exist in exceptional…