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On Machina’s paradoxes and limited attention
Economic Theory Bulletin Pub Date : 2019-11-02 , DOI: 10.1007/s40505-019-00179-z
Anastasia Burkovskaya

Limited attention and similarity of some of the states of the world together may nudge an agent to perceive the “grand world” as a collection of “small worlds”. We use this idea as an explanation for some of the ambiguity paradoxes posed by Machina (Am Econ Rev 99(1):385–392, 2009; Am Econ Rev 104(12):3814–3840, 2014) as a challenge to the prominent ambiguity theories. In addition, we propose a measure of rationality based on a number of potential violations of preference for the first-order stochastic dominance. We use this measure to explore how departures from perfect attention can be improved through changes to the structure of the “small worlds”.

中文翻译:

关于Machina的悖论和有限的关注

世界上某些州的有限关注和相似性可能会促使代理人将“大世界”视为“小世界”的集合。我们用这个想法来解释Machina(Am Econ Rev 99(1):385–392,2009; Am Econ Rev 104(12):3814-3840,2014)造成的一些歧义悖论。突出的歧义理论。此外,我们基于对一阶随机优势的潜在潜在违规行为,提出了一种合理性度量。我们使用这种方法来探索如何通过改变“小世界”的结构来改善对完美注意力的偏离。
更新日期:2019-11-02
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