The B.E. Journal of Theoretical Economics
Editor-in-Chief: Schipper, Burkhard
Ed. by Fong, Yuk-fai / Peeters, Ronald / Puzzello , Daniela / Rivas, Javier / Wenzelburger, Jan
2 Issues per year
IMPACT FACTOR increased in 2015: 0.412
5-year IMPACT FACTOR: 0.471
SCImago Journal Rank (SJR) 2015: 0.458
Source Normalized Impact per Paper (SNIP) 2015: 0.553
Impact per Publication (IPP) 2015: 0.329
Mathematical Citation Quotient (MCQ) 2015: 0.16
Limited Attention as the Bound on Rationality
A utility maximizing model of allocating limited attention between adopting new behaviors and adapting current behaviors generates an optimal policy that resembles commonly observed, and apparently irrational, behavioral rules. The ability to update current behaviors implies an endogenous opportunity cost of adopting a new behavior. If this cost is sufficiently high, then behaviors are less than substantively rational. However, if this high cost of attention is ignored, then behaviors are less rational than if this cost is considered. This is because more rational behaviors are updated less frequently and so economize on attention in the future.
Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.