Discussion paper

DP18875 Rational Inattention during an RCT

We show what the rational inattention model predicts about the treatment effect of information provided during a randomized control trial. This is a non-trivial question because the model implies optimal attention choice before, during, and after an information treatment. The predictions of the model are consistent with a negative relationship between the level of inflation and the magnitude of information treatment effects found in surveys across countries and time: when inflation is high, people respond less to provided information about inflation.


Mackowiak, B and M Wiederholt (2024), ‘DP18875 Rational Inattention during an RCT‘, CEPR Discussion Paper No. 18875. CEPR Press, Paris & London. https://cepr.org/publications/dp18875