I'm not very familiar with behavioral economics, but as a recommendation of a teacher I'm reading "A Behavioral New Keynesian Model" by Xavier Gabaix. There's a part that I don't understand, here it goes:
And the footnote says:
In particular I use the objective (not subjective) expectations. Also, I do not include thinking costs in the welfare. One reason is that thinking costs are very hard to measure (revealed preference arguments apply only if attention is exactly optimally set, something which is controversial). In the terminology of Farhi and Gabaix (2015), we are in the “no attention in welfare” case.
What does he mean with "This is as in much of behavioral economics, which views behavioral agents as using heuristics, but experience utility from consumption and leisure like rational agents"? Which author says that behavioral agents has utility like rational agents?
Thanks in advance.