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.[1][2]

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References edit

  1. ^ Sims, C.A., 2003. Implications of rational inattention. Journal of monetary Economics, 50(3), pp.665-690.
  2. ^ Sims, C.A., 2010. Rational inattention and monetary economics. Handbook of Monetary Economics, 3, pp.155-181.