Publications [#71655] of Stephen E Weinberg

Papers Published

1. with Xavier Gabaix, David Laibson, Guillermo Moloche, Costly Information Acquisition: Experimental Analysis of a Boundedly Rational Model, American Economic Review, vol. 96 no. 4 (September, 2006), pp. 1043-1068
   (last updated on 2007/11/19)

   Abstract:
   The directed cognition model assumes that agents use partially myopic option-value calculations to select their next cognitive operation. The current paper tests this model by studying information acquisition in two experiments. In the first experiment information acquisition has an explicit financial cost. In the second experiment, information acquistion is costly because time is scarce. The directed cognition model successfully predicts aggregate information acquisition patterns in these experiments. When the directed cognition model and the fully rational model make demonstrably di¤erent predictions, the directed cognition model better matches the laboratory evidence.