This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 96 No. 4 (September 2006)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Costly Information Acquisition: Experimental Analysis of a Boundedly Rational Model

Article Citation

Gabaix, Xavier, David Laibson, Guillermo Moloche, and Stephen Weinberg. 2006. "Costly Information Acquisition: Experimental Analysis of a Boundedly Rational Model." American Economic Review, 96(4): 1043-1068.

DOI: 10.1257/aer.96.4.1043

Abstract

The directed cognition model assumes that agents use partially myopic option-value calculations to select their next cognitive operation. The current paper tests this model by studying information acquisition in two experiments. In the first experiment, information acquisition has an explicit financial cost. In the second experiment, information acquisition is costly because time is scarce. The directed cognition model successfully predicts aggregate information acquisition patterns in these experiments. When the directed cognition model and the fully rational model make demonstrably different predictions, the directed cognition model better matches the laboratory evidence. (JEL D83)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (47.49 MB)

Authors

Gabaix, Xavier
Laibson, David
Moloche, Guillermo
Weinberg, Stephen


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us