Journal article
Switching cost models as hypothesis tests
- Abstract:
- We relate models based on costs of switching beliefs (e.g. due to inattention) to hypothesis tests. Specifically, for an inference problem with a penalty for mistakes and for switching the inferred value, a band of inaction is optimal. We show this band is equivalent to a confidence interval, and therefore to a two-sided hypothesis test.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
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- Files:
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(Preview, Accepted manuscript, pdf, 315.1KB, Terms of use)
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- Publisher copy:
- 10.1016/j.econlet.2018.11.014
Authors
- Publisher:
- Elsevier
- Journal:
- Economics Letters More from this journal
- Volume:
- 175
- Pages:
- 32-35
- Publication date:
- 2018-11-22
- Acceptance date:
- 2018-11-11
- DOI:
- ISSN:
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0165-1765
- Keywords:
- Pubs id:
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pubs:911976
- UUID:
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uuid:18c7bc7f-48aa-4846-a06f-082a9ab66230
- Local pid:
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pubs:911976
- Source identifiers:
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911976
- Deposit date:
-
2018-11-14
Terms of use
- Copyright holder:
- Elsevier BV
- Copyright date:
- 2018
- Rights statement:
- © 2018 Elsevier B.V. All rights reserved.
- Notes:
- This is the accepted manuscript version of the article. The final version is available form Elsevier at: https://doi.org/10.1016/j.econlet.2018.11.014
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