HIDDEN INFORMATION ACQUISITION AND STATIC CHOICE

This note explores the consequence of hidden information acquisition f or static choice theory. We show that any choice function in the obser vable problem can be consistent with some well-behaved choice function in a metaproblem with unobservable costly information acquisition. Th is illustrates how choices may not satisfy consistency conditions beca use a decision maker's decision process (in this case, information acq uisition) depends on her feasible set. It also illustrates the importa nce of modeling the source of violations of consistency conditions, ra ther than simply weakening axioms on preferences.