Posterior-Mean Separable Costs of Information Acquisition
Jeffrey Mensch, Komal Malik · 2024
We analyze a problem of revealed preference given state-dependent stochastic choice data in which the payoff to a decision maker (DM) only depends on their beliefs about posterior means. Often, the DM must also learn about or pay attention to the state; in applied work on this subject, a convenient assumption is that the costs of such learning are linearly dependent in the distribution over posterior means: