arXiv
Open Access
2022
On the Distributional Robustness of Finite Rational Inattention Models
Emerson Melo
Abstrak
In this paper we study a rational inattention model in environments where the decision maker faces uncertainty about the true prior distribution over states. The decision maker seeks to select a stochastic choice rule over a finite set of alternatives that is robust to prior ambiguity. We fully characterize the distributional robustness of the rational inattention model in terms of a tractable concave program. We establish necessary and sufficient conditions to construct robust consideration sets. Finally, we quantify the impact of prior uncertainty, by introducing the notion of \emph{Worst-Case Sensitivity}.
Topik & Kata Kunci
Penulis (1)
E
Emerson Melo
Akses Cepat
Informasi Jurnal
- Tahun Terbit
- 2022
- Bahasa
- en
- Sumber Database
- arXiv
- Akses
- Open Access ✓