Most theories in economics and finance expect what humans will do, given what they learn about the realm round them. yet what do humans learn about their environments? The examine of knowledge selection seeks to reply to this query, explaining why fiscal avid gamers comprehend what they know--and how the data they've got impacts collective results. rather than assuming what humans do or have no idea, info selection asks what humans would select to grasp. Then it predicts what, on condition that info, they'd decide to do. during this textbook, Laura Veldkamp introduces graduate scholars in economics and finance to this crucial new research.

The publication illustrates how details selection is used to respond to questions in financial economics, portfolio selection concept, enterprise cycle thought, overseas finance, asset pricing, and different parts. It indicates tips on how to construct and try out utilized concept versions with info frictions. And it covers fresh paintings on subject matters akin to rational inattention, info markets, and strategic video games with heterogeneous information.

• Illustrates how details selection is used to reply to questions in financial economics, portfolio selection conception, company cycle idea, overseas finance, asset pricing, and different parts
• Teaches easy methods to construct and try utilized idea types with info frictions
• Covers fresh study on subject matters akin to rational inattention, info markets, and strategic video games with heterogeneous information