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Wikipedia

Rational inattention

In economics, the theory of rational inattention deals with the effects of the cost of information acquisition on decision making. For example, when the information required for a decision is costly to acquire, the decision makers may rationally take decisions based on incomplete information, rather than incurring the cost to get the complete information.

See also Behavioral economics Christopher Sims Rationality Value of information Rational ignorance

References

Tags

  • Decision-making
  • Economic theories