Mierendorff, JK;
Che, YK;
(2017)
Optimal Sequential Decision with Limited Attention.
UCL Department of Economics: London, UK.
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Abstract
We consider a dynamic model of information acquisition. Before taking an action, a decision maker may direct her limited attention to collecting different types of evidence that support alternative actions. The optimal policy combines three strategies: (i) immediate action, (ii) a contradictory strategy seeking to challenge the prior belief, and (iii) a confirmatory strategy seeking to confirm the prior. The model produces a rich dynamic stochastic choice pattern as well as predictions in settings such as jury deliberation and political media choice.
| Type: | Working / discussion paper |
|---|---|
| Title: | Optimal Sequential Decision with Limited Attention |
| Open access status: | An open access version is available from UCL Discovery |
| Publisher version: | http://www.homepages.ucl.ac.uk/~uctpkmi/ |
| Language: | English |
| Keywords: | Wald sequential decision problem, choice of information, contradictory and confirmatory learning strategies, limited attention |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10037620 |
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