We review the recent literature on rational inattention, identify the main theoretical
mechanisms, and explain how it helps us understand a variety of phenomena across fields …

This chapter reviews how expectations data can inform theories of the labor market and job
search. The main focus of the chapter is on expectations data regarding outcomes of the job …

This paper uses job seekers' elicited beliefs about job finding to disentangle the sources of
the decline in job-finding rates by duration of unemployment. We document that beliefs have …

We use laboratory experiments to test models of rational inattention, in which people acquire
information to maximize utility net of information costs. We show that subjects adjust their …

We study how an agent learns from endogenous data when their prior belief is misspecified.
We show that only uniform Berk–Nash equilibria can be long‐run outcomes, and that all …

We introduce a simple method of recovering attention costs from choice data. Our method
rests on a precise analogy with production theory. Costs of attention determine consumer …

Firms arguably price at ninety-nine-ending prices because of left-digit bias—the tendency of
consumers to perceive a 4.99asmuchlowerthana 5.00. Analysis of retail scanner data on …

Despite the implications for policy, empirical evidence on the relative importance of factors
that shape labor supply responses is missing. This paper helps fill this gap and quantifies …

We show in two natural experiments that default rules in Medicare Part D have large,
persistent effects on enrollment and drug utilization of low-income beneficiaries. The …

This paper studies commodity taxation in a model featuring heterogeneous consumers,
imperfect competition, and tax salience. We derive new formulas for the incidence and …