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Konrad Mierendorff, Ph.D.

University College London, United Kingdom

Authors: Yeon-Koo Che and Konrad Mierendorff

Abstract: We consider a dynamic model of information acquisition. Before taking an action, a decision maker may direct her limited attention to collecting different types of evidence that support alternative actions. The optimal policy combines three strategies: (i) immediate action, (ii) a contradictory strategy seeking to challenge the prior belief, and (iii) a confirmatory strategy seeking to confirm the prior. The model produces a rich dynamic stochastic choice pattern as well as predictions in settings such as jury deliberation and political media choice.

Keywords: Wald sequential decision problem, choice of information, contradictory and confirmatory learning strategies, limited attention.

Full Text of an older version of the paper (with a different title) is available here.