## What is/are Rational Inattention?

Rational Inattention - I rely on rational inattention theory (Sims 2003) to develop and formalize the relationships among the factors thatdetermine analyst attention and how analyst attention affects forecast accuracy.^{[1]}This paper presents evidence that incorporating costly attention, modelled with rational inattention, might solves three well-established puzzles in the retirement literature.

^{[2]}We find that there is no case for rational inattention.

^{[3]}This paper generalizes the theory of policy uncertainty with the new literature on rational inattention.

^{[4]}Here, we further develop this idea by considering how simulation noise may be adaptively modulated by task demands, based on principles of rational inattention.

^{[5]}We show that a model of rational inattention is useful for explaining subjects’ responses to different pension replacement rates.

^{[6]}The constraint is a limit on the complexity of memory measured using Shannon’s mutual information, as in models of rational inattention; but our theory differs from that of Sims (2003) in not assuming costless memory of past cognitive states.

^{[7]}I model this by extending the framework of rational inattention by heterogeneous marginal costs of the information processing, which are dependent on the visibility of the piece of information.

^{[8]}We model this decision using the rational inattention approach and describe the rationally inattentive consumer’s choice behavior when she faces alternatives with different information costs.

^{[9]}Basing our model on the rational inattention hypothesis, we find that individual heterogeneity plays a very significant role in shaping individual expectations; also, Brazilians adjust expectations to current inflation and to a fixed reference value, while professional forecasts do not play a very relevant role.

^{[10]}Then, we develop and structurally estimate a rational inattention model where agents choose how much attention to allocate to updating.

^{[11]}Estimated with a novel identification strategy, the structural parameters of a rational inattention model are, nevertheless, consistent with substantial sophistication.

^{[12]}This paper explores the connection between rational inattention and the monotone likelihood ratio property (MLRP).

^{[13]}The empirical framework incorporates consumers' subjective prior belief to Rational Inattention (RI) theory by Matĕjka and MacKay (2015); Fosgerau et al.

^{[14]}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 available alternatives will be considered for choice.

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## random travel time

This paper sets up a rational inattention model for the choice of departure time for a traveler facing random travel time.^{[1]}This paper sets up a rational inattention model for the route choice problem in a stochastic network where travelers face random travel time.

^{[2]}This paper sets up a rational inattention model for the route choice problem in a stochastic network where travelers face random travel time.

^{[3]}

## rational inattention model

Our results show that the rational inattention model, which has found various applications in the literature, is a special case of the costly Bayesian learning model.^{[1]}This paper establishes an equivalence result between the Dogit model and the rational inattention model.

^{[2]}We develop a tractable and portable method for characterizing the solution to dynamic multivariate rational inattention models in linear quadratic Gaussian settings.

^{[3]}Then, we develop and structurally estimate a rational inattention model where agents choose how much attention to allocate to updating.

^{[4]}We extend the discrete-choice rational inattention model to the case in which the decision maker can influence the payoff distribution across states.

^{[5]}Estimated with a novel identification strategy, the structural parameters of a rational inattention model are, nevertheless, consistent with substantial sophistication.

^{[6]}This paper sets up a rational inattention model for the choice of departure time for a traveler facing random travel time.

^{[7]}This paper sets up a rational inattention model for the route choice problem in a stochastic network where travelers face random travel time.

^{[8]}This paper sets up a rational inattention model for the route choice problem in a stochastic network where travelers face random travel time.

^{[9]}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 available alternatives will be considered for choice.

^{[10]}

## rational inattention theory

This paper applies rational inattention theory proposed by Sims (2003) to study a puzzling empirical fact that wealthier individuals have a stronger precautionary saving motive.^{[1]}I rely on rational inattention theory (Sims 2003) to develop and formalize the relationships among the factors thatdetermine analyst attention and how analyst attention affects forecast accuracy.

^{[2]}