We review the recent literature on rational inattention, identify the main theoretical
mechanisms, and explain how it helps us understand a variety of phenomena across fields …

For a long while after the explosion of macroeconomics in the 1970s, the field looked like a
battlefield. Over time, however, mainly because facts do not go away, a largely shared vision …

Modeling human cognition is challenging because there are infinitely many mechanisms
that can generate any given observation. Some researchers address this by constraining the …

This paper examines the association between Integrated Reporting and firm valuation.
Using a sample of listed firms in South Africa, we examine the association between cross …

Individuals must often choose among discrete actions with imperfect information about their
payoffs. Before choosing, they have an opportunity to study the payoffs, but doing so is …

This paper presents a model in which price setting firms decide what to pay attention to,
subject to a constraint on information flow. When idiosyncratic conditions are more variable …

China's digital economy has made amazing achievements, which brings deep impacts on
enterprise innovation. Based on unbalance panel dataset covering more than two thousand …

Apparently mistaken decisions are ubiquitous. To what extent does this reflect irrationality,
as opposed to a rational trade-off between the costs of information acquisition and the …

The question of whether and how mutual fund managers provide valuable services for their
clients motivates one of the largest literatures in finance. One candidate explanation is that …

If an investor wants to form a portfolio of risky assets and can exert effort to collect
information on the future value of these assets before he invests, which assets should he …