A “quantized” approach to rational inattention

Gilles Saint-Paul

European Economic Review, 2017, vol. 100, issue C, 50-71

Abstract: In this paper, I propose a model of rational inattention where the choice variable is a deterministic function of the exogenous variables, and still only a finite amount of information is being used. This holds provided the choice variable is discrete rather than continuous; that is, the mapping from the realization of the exogenous variables to the endogenous ones is piece-wise constant.

Keywords: Rational inattention; Lumpy adjustment; Price-setting; Monetary policy; Mutual information; Entropy (search for similar items in EconPapers)
JEL-codes: D8 E3 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: A “quantized” approach to rational inattention (2017)
Working Paper: A “quantized” approach to rational inattention (2017)
Working Paper: A "quantized" approach to rational inattention (2011)
Working Paper: A "quantized" approach to rational inattention (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:100:y:2017:i:c:p:50-71

DOI: 10.1016/j.euroecorev.2017.07.004

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