TY - JOUR
TI - Speed, Accuracy, and the Optimal Timing of Choices
AU - Fudenberg, Drew
AU - Strack, Philipp
AU - Strzalecki, Tomasz
T2 - American Economic Review
AB - We model the joint distribution of choice probabilities and decision times in binary decisions as the solution to a problem of optimal sequential sampling, where the agent is uncertain of the utility of each action and pays a constant cost per unit time for gathering information. We show that choices are more likely to be correct when the agent chooses to decide quickly provided that the agent's prior beliefs are correct. This better matches the observed correlation between decision time and choice probability than does the classical drift-diffusion model (DDM), where the agent knows the utility difference between the choices.
DA - 2018/12//
PY - 2018
DO - 10.1257/aer.20150742
VL - 108
IS - 12
SP - 3651
EP - 84
UR - https://www.aeaweb.org/articles/attachments?retrieve=RKKeJsAJY5NM6VeycvBWI6lGBrG_N25O
KW - _included_in_phds.io
ER -