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Rational inattention

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In economics, the theory of rational inattention deals with the effects of the cost of information acquisition on decision making. For example, when the information required for a decision is costly to acquire, the decision makers may rationally take decisions based on incomplete information, rather than incurring the cost to get the complete information.

See also

References

  1. Sims, C.A., 2003. Implications of rational inattention. Journal of monetary Economics, 50(3), pp.665-690.
  2. Sims, C.A., 2010. Rational inattention and monetary economics. Handbook of Monetary Economics, 3, pp.155-181.
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