NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Dániel Csaba

New York University
19 West 4th Street
New York, NY 10003

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Institutional Affiliation: New York University

NBER Working Papers and Publications

November 2018Rational Inattention, Competitive Supply, and Psychometrics
with Andrew Caplin, John Leahy, Oded Nov: w25224
We introduce a simple method of recovering attention costs from choice data. Our method rests on a precise analogy with production theory. Costs of attention determine consumer demand and consumer welfare just as a competitive firm's technology determines its supply curve and profits. We implement our recovery method experimentally, outline applications, and link our work to the broader literature on inattention and mistaken decisions.

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