Princeton University economist who was awarded the Nobel prize in economics. In 2003 he developed a "rational inattention" model, in which optimising agents can process only so much information at a time. The model explains the smooth (rather than instant) adjustment of various macroeconomic variables, including interest rates and prices, to new information: people sensibly devote just a portion of their limited attention to learning about market-moving news.
His work built on Herbert Simon's concept of bounded rationality and helped lay the foundations of attention economics.
"Faith: not *wanting* to know what is true."