Related papers: Attention elasticities and invariant information c…
This paper uses an axiomatic foundation to create a new measure for the cost of learning that allows for multiple perceptual distances in a single choice environment so that some events can be harder to differentiate between than others.…
This paper establishes a general equivalence between discrete choice and rational inattention models. Matejka and McKay (2015, AER) showed that when information costs are modelled using the Shannon entropy function, the resulting choice…
We introduce a new cost function over experiments, f-information, based on the theory of multivariate statistical divergences, that generalizes Sims's classic model of rational inattention as well as the class of posterior-separable cost…
We investigate attention as the active pursuit of useful information. This contrasts with attention as a mechanism for the attenuation of irrelevant information. We also consider the role of short-term memory, whose use is critical to any…
The quadratic complexity of standard attention mechanisms poses a significant scalability bottleneck for large language models (LLMs) in long-context scenarios. While hybrid attention strategies that combine sparse and full attention within…
The "free trial" followed by automatic renewal is a dominant business model in the digital economy. Standard models explain trials as a mechanism for consumers to learn their valuation for a product. We propose a complementary theory based…
We develop an equilibrium theory of attention and politics. In a spatial model of electoral competition where candidates have varying policy preferences, we examine what kinds of political behaviors capture voters' limited attention and how…
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…
We consider a framework involving behavioral economics and machine learning. Rationally inattentive Bayesian agents make decisions based on their posterior distribution, utility function and information acquisition cost Renyi divergence…
Stochastic volatility models describe asset prices $S_t$ as driven by an unobserved process capturing the random dynamics of volatility $\sigma_t$. Here, we quantify how much information about $\sigma_t$ can be inferred from asset prices…
We develop a unified analysis of how information captures attention. A decision maker (DM) faces a dynamic information structure and decides when to stop paying attention. We characterize the convex$\unicode{x2013}$order frontier and…
Attention mechanisms have been extensively employed in various applications, including time series modeling, owing to their capacity to capture intricate dependencies; however, their utility is often constrained by quadratic computational…
I provide a model of rational inattention with heterogeneity and prove it is observationally equivalent to a state-dependent stochastic choice model subject to attention costs. I demonstrate that additive separability of unobservable…
This paper illustrates how one can deduce preference from observed choices when attention is not only limited but also random. In contrast to earlier approaches, we introduce a Random Attention Model (RAM) where we abstain from any…
Attention mechanism has become the dominant module in natural language processing models. It is computationally intensive and depends on massive power-hungry multiplications. In this paper, we rethink variants of attention mechanism from…
Attention can be used to inform choice selection in contextual bandit tasks even when context features have not been previously experienced. One example of this is in dimensional shifts, where additional feature values are introduced and…
When decision makers evaluate a sequence of rewards, they may pay more attention to larger rewards and, given attention is limited, less attention to smaller rewards. They may also become less attentive to each reward when attention is…
This paper investigates the cost function learning in social information networks, wherein the influence of humans' memory on information consumption is explicitly taken into account. We first propose a model for social…
Being attentive to task-relevant features can improve task performance, but paying attention comes with its own metabolic cost. Therefore, strategic allocation of attention is crucial in performing the task efficiently. This work aims to…
We introduce utility-directed procedures for mediating the flow of potentially distracting alerts and communications to computer users. We present models and inference procedures that balance the context-sensitive costs of deferring alerts…