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Dynamically Aggregating Diverse Information

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  • Annie Liang
  • Xiaosheng Mu
  • Vasilis Syrgkanis

Abstract

An agent has access to multiple information sources, each of which provides information about a different attribute of an unknown state. Information is acquired continuously -- where the agent chooses both which sources to sample from, and also how to allocate attention across them -- until an endogenously chosen time, at which point a decision is taken. We provide an exact characterization of the optimal information acquisition strategy under weak conditions on the agent's prior belief about the different attributes. We then apply this characterization to derive new results regarding: (1) endogenous information acquisition for binary choice, (2) strategic information provision by biased news sources, and (3) the dynamic consequences of attention manipulation.

Suggested Citation

  • Annie Liang & Xiaosheng Mu & Vasilis Syrgkanis, 2019. "Dynamically Aggregating Diverse Information," Papers 1910.07015, arXiv.org, revised Apr 2021.
    • Handle: RePEc:arx:papers:1910.07015
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    Cited by:

    1. Bottan, Daria & McKee, Douglas & Orlov, George & McDougall, Anna, 2022. "Racial and gender achievement gaps in an economics classroom," International Review of Economics Education, Elsevier, vol. 40(C).

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