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 …

This chapter reviews the microeconometrics literature on partial identification, focusing on
the developments of the last thirty years. The topics presented illustrate that the available …

Inattention is a central, unifying theme for much of behavioral economics. It permeates such
disparate fields as microeconomics, macroeconomics, finance, public economics, and …

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 …

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 …

We introduce three new classes of attention cost functions: posterior separable, uniformly
posterior separable, and invariant posterior separable. As with the Shannon cost function, all …

We unite two basic approaches to modelling limited attention in choice by showing that the
rational inattention model implies the formation of consideration sets—only a subset of the …

Consideration set models generalize discrete-choice models by relaxing the assumption
that consumers consider all available options. Determining which options were considered …

We use laboratory experiments to test models of rational inattention, in which people acquire
information to maximize utility net of information costs. We show that subjects adjust their …

Perturbed utility functions—the sum of expected utility and a nonlinear perturbation function—
provide a simple and tractable way to model various sorts of stochastic choice. We provide …