arXiv subjects

Tommaso Denti

Publications and source records attributed to Tommaso Denti.

2 recordsLinked to original sources

arXiv2026

Modeling information acquisition: divergences, duality, and discrete choice

We introduce a new cost function over experiments, f-information, based on the theory of multivariate statistical divergences, that generalizes Sims's classic model of rational inattention as well as the class of posterior-separable cost functions. We characterize its behavioral predictions by deriving optimality conditions that extend those of Matejka and McKay (2015) and Caplin, Dean, and Leahy (2019) beyond mutual information. Using these tools, we study the implications of f-information in a number of canonical decision problems. The framework can be analyzed using familiar methods of microeconomics---convex duality and the Arrow-Pratt approach to expected utility---and yields connections to well-known models of discrete choice.

econ.TH↗

arXiv2023

Robust Predictions in Games with Rational Inattention

We derive robust predictions in games involving flexible information acquisition, also known as rational inattention (Sims 2003). These predictions remain accurate regardless of the specific methods players employ to gather information. Compared to scenarios where information is predetermined, rational inattention reduces welfare and introduces additional constraints on behavior. We show these constraints generically do not bind; the two knowledge regimes are behaviorally indistinguishable in most environments. Yet, we demonstrate the welfare difference they generate is substantial: optimal policy depends on whether one assumes information is given or acquired. We provide the necessary tools for policy analysis in this context.

econ.TH↗