TY - JOUR
T1 - Rational inattention and revealed preference
T2 - The data-theoretic approach to economic modeling
AU - Caplin, Andrew
N1 - Publisher Copyright:
© 2013 Published by Elsevier Ltd.
PY - 2014
Y1 - 2014
N2 - Beliefs have as pervasive a role as utility functions in economic models of choice, and are no more visible to the naked eye. This suggests the value of a data-theoretic approach to imperfect information along the lines of Samuelson's "revealed preference" approach to utility maximization. I introduce a recently developed approach of this nature (Caplin and Martin, 2013a; Caplin and Dean, 2013a, 2013b). I highlight the broader potential of the data-theoretic approach to answer questions of an inter-disciplinary nature and to discipline an oncoming flood of behaviorally-relevant data.
AB - Beliefs have as pervasive a role as utility functions in economic models of choice, and are no more visible to the naked eye. This suggests the value of a data-theoretic approach to imperfect information along the lines of Samuelson's "revealed preference" approach to utility maximization. I introduce a recently developed approach of this nature (Caplin and Martin, 2013a; Caplin and Dean, 2013a, 2013b). I highlight the broader potential of the data-theoretic approach to answer questions of an inter-disciplinary nature and to discipline an oncoming flood of behaviorally-relevant data.
KW - Bayesian updating
KW - Behavioral economics
KW - Rational inattention
KW - Revealed preference
UR - http://www.scopus.com/inward/record.url?scp=84927695524&partnerID=8YFLogxK
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U2 - 10.1016/j.rie.2013.09.001
DO - 10.1016/j.rie.2013.09.001
M3 - Article
AN - SCOPUS:84927695524
SN - 1090-9443
VL - 68
SP - 295
EP - 305
JO - Research in Economics
JF - Research in Economics
IS - 4
ER -