Microtheory Seminar Series. Speed, Accuracy, and Complexity

Published: 27 February 2024

26 March. Dr Duarte Gonçalves, University College London

Dr Duarte Gonçalves, University College London

"Speed, Accuracy, and Complexity"
Tuesday 26 March. 4 p.m.
Room 355 Gilbert Scott Building

Abstract

This paper discusses the use of response time as an indicator of problem complexity in decision-making. To do so, it revisits a canonical Wald model of optimal stopping and shows that while choice quality is monotone in problem complexity, expected stopping time is inverse-U shaped. This non-monotonicity is found to be generic in models with costly information acquisition. It also provides a rationale for ambiguity in the relationship between response time and ability. Finally, it proposes a way that sidesteps the use of response time and allows to correctly infer problem complexity using incentive distortion.

Bio

Duarte Gonçalves is an Assistant Professor at UCL working on economic theory and behavioural economics, with an emphasis on modelling the relationship between choice, belief formation, and decision time.

For further information, please contact business-school-research@glasgow.ac.uk

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First published: 27 February 2024

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