Stochastic Choice: An Optimizing Neuroeconomic Model.

A model is proposed in which stochastic choice results from noise in cognitive processing rather than random variation in preferences. The mental process used to make a choice is nonetheless optimal, subject to a constraint on available information-processing capacity that is motivated by neurophysi...

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Detalles Bibliográficos
Publicado en:American Economic Review Vol. 104; no. 5; pp. 495 - 501
Formato: Artículo
Publicado: American Economic Association May2014
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:A model is proposed in which stochastic choice results from noise in cognitive processing rather than random variation in preferences. The mental process used to make a choice is nonetheless optimal, subject to a constraint on available information-processing capacity that is motivated by neurophysiological evidence. The optimal information-constrained model is found to offer a better fit to experimental data on choice frequencies and reaction times than either a purely mechanical process model of choice (the drift-diffusion model) or an optimizing model with fewer constraints on feasible choice processes (the rational inattention model).