Abstract: Consumption and investment decisions of agents in the presence of costs of acquiring, absorbing and processing information are studied in this paper. As the optimal decision, the agents will choose to adjust their plans at a pre-set date and keep inattentive between the adjustment. The rational inattentive behavior will directly affect the investment decision, and makes an interpretation to the limited participation, disposition effect and the high saving rate in the household's decision-making. It makes clear about the ways and degree of the effect to the investors' decision-making by the factors as costs and wealth etc., and provides a feasible theoretical basis and policy suggestions to how to guide rational behavior of different investors, improve the capital market mechanism, and perfect the diversified financial service system. At the same time, compared to the related research results, it can be found that investors in the domestic market are mainly being short-term inattentive investors, which provides a new way to study the price movements and the effect of policy under information delay.

Key words: inattentive, limited attention, investment decision, disposition effect, household finance