David Walker-Jones

Dr David Walker-Jones

PhD, MA, BSc
Semester 1: Tuesdays from 1 PM to 3 PM and Fridays from 12 noon to 2 PM

Academic and research departments

School of Economics.


David Walker-Jones (2023)Rational inattention with multiple attributes, In: Journal of economic theory212105688 Elsevier Inc

This paper studies a new measure for the cost of learning that allows the different attributes of the options faced by an agent to differ in their associated learning costs. The new measure maintains the tractability of Shannon's classic measure but produces richer choice predictions and identifies a new form of informational bias significant for welfare and counterfactual analysis that is conducted with the multinomial logit model. Necessary and sufficient conditions are provided for optimal agent behavior under the new measure for the cost of learning.