ICES Special Talk

Attention Theory

Monday, October 10, 2022 12:00 PM to 1:00 PM EDT
Vernon Smith Hall (formerly Metropolitan Building), #5183

ICES Special Talk

 

ICES will host a Special Talk this Fall 2022 semester that will feature:

Soo Hong Chew

National University of Singapore

Attention Theory

 

 

Abstract

We model the role of attention in decision making under risk and uncertainty from the perspective of the decision maker as a cognitive miser, and arrive at the utility of a lottery through unstable attention-dependent decision weights. The resulting Attention Theory (AT) can account for a broad range of choice phenomena under different attentional attitudes. Under a top-down consequentialist attention, AT exhibits continuity in decision weights and can account for Allais behavior, fourfold pattern of risk attitude, and disjunction effect. Under a weaker form of consequentialist attention, AT can exhibit ambiguity aversion, discontinuity in valuation from event splitting, and deliver an attention-based regret theory in binary choice. Under moderate inattention involving the presence of bottom-up salience, AT delivers context sensitive choice featuring variable loss aversion driven disproportionately by loss stimuli as well as source preference including familiarity bias. It further delivers, in binary choice, a loss-gain asymmetric salience theory. When bottom-up salience is predominant, AT yields an attention based random utility, giving rise to stochastic intransitivity in binary choice.

 

 

Add this event to your calendar