Subjective Information Choice Processes

David Dillenberger (), R. Vijay Krishna () and Philipp Sadowski ()
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David Dillenberger: University of Pennsylvania
R. Vijay Krishna: Florida State University
Philipp Sadowski: Duke University

PIER Working Paper Archive from Penn Institute for Economic Research, Department of Economics, University of Pennsylvania

Abstract: We propose a class of dynamic models that capture subjective (and hence unob-servable) constraints on the amount of information a decision maker can acquire, pay attention to, or absorb, via an Information Choice Process (icp). An icp specifies the information that can be acquired about the payo?-relevant state in the current period, and how this choice a?ects what can be learned in the future. In spite of their generality, wherein icps can accommodate any dependence of the information constraint on the history of information choices and state realizations, we show that the constraints imposed by them are identified up to a dynamic extension of Blackwell dominance. All the other parameters of the model are also uniquely identified. Behaviorally, the model is characterized by a novel recursive application of static properties.

Keywords: Dynamic Preferences; Information Choice Process; Dynamic Blackwell Dominance; Rational Inattention; Subjective Markov Decision Process (search for similar items in EconPapers)
JEL-codes: D80 D81 D90 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2020-03-06
New Economics Papers: this item is included in nep-dcm, nep-mic, nep-ore and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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