The Social Planning Problem with Costly Information Processing: Towards Understanding Production Decisions in Centralized Economies
用理性疏忽方法研究社会规划者在不确定家庭偏好时如何分配稀缺资源处理信息，发现信息处理成本影响生产决策，如消费与休闲权衡、产品种类范围，并可能解释社会主义与资本主义国家生产决策差异。
It has long been argued that market economies feature an inherent advantage over centralized economies because they are subject to fewer information processing needs. However, very little work has investigated the role of these needs in explaining differences in optimal production decisions between centralized and market economies. This paper uses a rational inattention approach to study the decision problem of a social planner who faces uncertainty about households' preferences and can reduce this uncertainty by allocating scarce resources to processing information. The model shows that costly information processing has important implications for optimal production decisions, including for the trade‐off between consumption and leisure, the optimal range of different goods produced, and the role of correlated consumer preferences. Overall, the results suggest that differences in empirical production decisions between socialist and capitalist countries may be driven by the different information needs and associated costs of processing information inherent to each economic system, rather than by differences in ideology or political preferences.