Keywords: cognition and incentives, Choice theory, reasoning, fact-free learning, sequential heuristics, value of information, forward looking, Bayesian consistency
JEL codes: D01, D03, D80, D83
Abstract
We extend the baseline setting in Alaoui and Penta (2018) to provide the representation of the cost-benefit analysis in reasoning of a (non-myopic) forward looking agent who anticipates his future steps of reasoning to take the form of a partitional information structure evaluated in a Bayesian-consistent way.
