I too felt the curious abrupt questionings stir within me.
Writing: jzmazlish.substack.com
Website: jzacharymazlish.com
Which made me think about a few other recent papers where fixed optimization costs are a key ingredient:
Some of the most important lottery anomalies from the behavioral risk literature (e.g., probability weighting and loss aversion) actually have nothing to do with risk.
They also arise in perfectly deterministic settings.
Lead article in the latest AER issue:
www.aeaweb.org/articles?id=...
Which made me think about a few other recent papers where fixed optimization costs are a key ingredient: