Rational Inattention

The idea comes to me first from a chat with Q.


A quote from Chris Sims:
“Rational inattention” models introduce the idea that people’s abilities to translate external data into action are constrained by a finite Shannon “capacity” to process information. Such models do explain why some freely available information is not used, or imperfectly used.

I first find it an appealing idea intellectually.

Later I recognize its realistic relevance and instructive tone. 

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Comments

  • Q  On July 16, 2011 at 5:55 pm

    His instructive tone is recognizable in almost every of his academic papers that I’ve read. The tone is just like he’s writing solution for pset 🙂

    • mumamme  On July 16, 2011 at 6:02 pm

      …I am picturing him writing out Pset solutions himself and telling you about coding with that face in that office!!!

      Does wordpress look good to you?hahaha I like it so far~

  • Q  On July 20, 2011 at 1:11 pm

    yeah I like it! Just one thing: it seems to have too many colors…

    • mumamme  On July 21, 2011 at 10:18 am

      That’s because I am trying to change the HTML codes for fun…

Trackbacks

  • By Won the bet? « Definitely Maybe on October 10, 2011 at 10:44 am

    […] Yesterday I was betting that Chris Sims will get Nobel this year, because he made the debut of my blog. […]

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