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Dynamically Aggregating Diverse Information

Author

Listed:
  • Annie Liang

    (Northwestern University)

  • Xiaosheng Mu

    (Princeton University)

  • Vasilis Syrgkanis

    (Microsoft Research)

Abstract

An agent has access to multiple information sources, each modeled as a Brownian motion whose drift provides information about a different component of an unknown Gaussian 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 demonstrate conditions on the agent’s prior belief under which it is possible to exactly characterize the optimal information acquisition strategy. We then apply this characterization to derive new results regarding: (1) endogenous information acquisition for binary choice, (2) the dynamic consequences of attention manipulation, and (3) strategic information provision by biased news sources.

Suggested Citation

  • Annie Liang & Xiaosheng Mu & Vasilis Syrgkanis, 2021. "Dynamically Aggregating Diverse Information," Working Papers 2021-43, Princeton University. Economics Department..
    • Handle: RePEc:pri:econom:2021-43
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    References listed on IDEAS

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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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    More about this item

    Keywords

    information aggregation;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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