Agents make decisions based on limited information processing abilities, not always rationally. A model was created to understand how agents make decisions in competitive markets. The model shows that when information is free, agents act rationally, but when it's costly, they stick to their initial beliefs. By incorporating prior beliefs, the model can predict how agents make decisions in response to market feedback. Using Australian housing market data, the model demonstrated how prior knowledge influences agent decisions, separating past beliefs from utility maximization behavior.