Lecture 9: Solving the Shannon Model

The following sections are included:

• Two New Domains of Choice

• The SDSC-Based Solution

• The Posterior-Based Solution

• Safe vs. Risky: The SDSC-Based Conditions

• Safe vs. Risky: The Posterior-Based Approach

• Choosing Among Options with IID Priors

• Rationally Inattentive Nash Equilibrium