EconPapers    
Economics at your fingertips  
 

An Optimizing Neuroeconomic Model of Discrete Choice

Michael Woodford ()

No 19897, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: A model is proposed in which stochastic choice results from noise in cognitive processing rather than random variation in preferences. The mental process used to make a choice is nonetheless optimal, subject to a constraint on available information-processing capacity that is partially motivated by neurophysiological evidence. The optimal information-constrained model is found to offer a better fit to experimental data on choice frequencies and reaction times than either a purely mechanical process model of choice (the drift-diffusion model) or an optimizing model with fewer constraints on feasible choice processes (the rational inattention model).

JEL-codes: C25 C91 D87 (search for similar items in EconPapers)
Date: 2014-02
New Economics Papers: this item is included in nep-dcm, nep-exp, nep-neu and nep-ore
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.nber.org/papers/w19897.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:19897

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w19897

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2021-08-26
Handle: RePEc:nbr:nberwo:19897