Related papers: Costly Attention and Retirement

We modify a canonical experimental design to identify the effectiveness of retractions. Comparing beliefs after retractions to beliefs (a) without the retracted information and (b) after equivalent new information, we find that retractions…

Tree-structured models are a powerful alternative to parametric regression models if non-linear effects and interactions are present in the data. Yet, classical tree-structured models might not be appropriate if data comes in clusters of…

Structuring a viable pension plan is a problem that arises in the study of financial contracts pricing and bears special importance these days. Deterministic pension models often rely on projections that are based on several assumptions…

In this paper, we develop a deep neural network approach to solve a lifetime expected mortality-weighted utility-based model for optimal consumption in the decumulation phase of a defined contribution pension system. We formulate this…

Informal carers provide the majority of care for people living with challenges related to older age, long-term illness, or disability. However, the care they provide often results in a significant income penalty for carers, a factor largely…

As artificial agents become increasingly capable, what internal structure is *necessary* for an agent to act competently under uncertainty? Classical results show that optimal control can be *implemented* using belief states or world…

Social learning, a fundamental process through which individuals shape their beliefs and perspectives via observation and interaction with others, is critical for the development of our society and the functioning of social governance.…

Researchers and practitioners in the field of reliability engineering and optimization frequently use active redundancy techniques to intensify the performance of systems. In this article, we study allocation strategies of non-matching…

Sparse attention has been claimed to increase model interpretability under the assumption that it highlights influential inputs. Yet the attention distribution is typically over representations internal to the model rather than the inputs…

Selective prediction systems can mitigate harms resulting from language model hallucinations by abstaining from answering in high-risk cases. Uncertainty quantification techniques are often employed to identify such cases, but are rarely…

Accuracy and interpretability are two dominant features of successful predictive models. Typically, a choice must be made in favor of complex black box models such as recurrent neural networks (RNN) for accuracy versus less accurate but…

Policies ensuring that research data are available on public archives are increasingly being implemented at the government [1], funding agency [2-4], and journal [5,6] level. These policies are predicated on the idea that authors are poor…

Language is not only used to transmit neutral information; we often seek to persuade by arguing in favor of a particular view. Persuasion raises a number of challenges for classical accounts of belief updating, as information cannot be…

This article examines the impact of China's delayed retirement announcement on households' savings behavior using data from China Family Panel Studies (CFPS). The article finds that treated households, on average, experience an 8% increase…

We solve a lifecycle model in which the consumer's chronological age does not move in lockstep with calendar time. Instead, biological age increases at a stochastic non-linear rate in time like a broken clock that might occasionally move…

Principal-Agent (PA) problems describe a broad class of economic relationships characterized by misaligned incentives and asymmetric information. The Principal's problem is to find optimal incentives given the available information, e.g., a…

We develop a theoretical framework for understanding how cognitive load affects information processing in financial markets and test it using exogenous variation in disclosure complexity. Our model distinguishes between attention allocation…

The attention mechanism is considered the backbone of the widely-used Transformer architecture. It contextualizes the input by computing input-specific attention matrices. We find that this mechanism, while powerful and elegant, is not as…

Maintaining information in context is essential in successful real-time language comprehension, but maintenance is cognitively costly and can slow processing. We hypothesize that rational language users selectively maintain information that…

Prolonged sedentary behavior is prevalent among office workers and has been found to be detrimental to health. Preventing and reducing prolonged sedentary behavior require interventions, and persuasive technology is expected to make a…