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[Rational Inattention] Suppose you have to decide whether to buy a car or not, so that your possible actions are A = {B(uy), N(ot)}. The
[Rational Inattention] Suppose you have to decide whether to buy a car or not, so that your possible actions are A = {B(uy), N(ot)}. The car can be in either good or poor condition, so that the states of the world are S = {G(ood), P(oor)}. Your utilities are given by U(B,G) = 10, U(B,P) = 0, U(N,G) = 6, and U(N,P) = 6. Thus, if you don't buy you receive a certain utility of 6, whereas if you buy, you are better off in the Good state than the Poor state
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