Response time and revealed information structure

Tomohito Aoyama

No HIAS-E-101, Discussion paper series from Hitotsubashi Institute for Advanced Study, Hitotsubashi University

Abstract: Consider a decision-maker who has an opportunity to wait for information before making a choice. He can obtain more information by waiting more, but this is costly. As a result, he endogenously determines the length of time to choose an alternative, which is called the response time. The present study models such a decision-maker as if he solves an optimal stopping problem. The model incorporates a dynamic information structure formalized as an evolving information partition, which is called filtration. I axiomatically characterize the model using behavioral data consisting of choices and response times that depend on choice situations and states. That is, from the data, we can identify filtration that governs the decision-maker's learning process as well as other model parameters. This result implies that using response time helps us understand the human cognitive process.

Keywords: Response time; Subjective learning; Information acquisition (search for similar items in EconPapers)
JEL-codes: D01 D81 D83 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2020-12
New Economics Papers: this item is included in nep-mic and nep-ore
Note: November 30, 2020
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hiasdp:hias-e-101

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