Original title: Rational inattention to discrete choices: a new foundation for the multinomial logit model
Authors: Matějka, Filip ; McKay, A.
Document type: Research reports
Year: 2011
Language: eng
Series: CERGE-EI Working Paper Series, volume: 442
Abstract: Often, individuals must choose among discrete alternatives with imperfect information about their values, such as selecting a job candidate, a vehicle or a university. Before choosing, they may have an opportunity to study the options, but doing so is costly. This costly information acquisition creates new choices such as the number of and types of questions to ask the job candidates. We model these situations using the tools of the rational inattention approach to information frictions (Sims, 2003).
Keywords: discrete choice; logit model; rational inattention
Project no.: CEZ:AV0Z70850503 (CEP), LC542 (CEP)
Funding provider: GA MŠk

Institution: Economics Institute AS ČR (web)
Document availability information: Fulltext is available at external website.
External URL: http://www.cerge-ei.cz/pdf/wp/Wp442.pdf
Original record: http://hdl.handle.net/11104/0198510

Permalink: http://www.nusl.cz/ntk/nusl-71602


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