Limited Attention as a Scarce Resource in Information-Rich Economies
Abstract
This article uses basic facts from the psychology of attention to show how the limited attention of consumers affects economic competition. The article determines endogenously whether an economy is information rich or information poor. A conventional economic equilibrium results if subjects have spare attention capacity. At the positive level, the respective impacts of advances in information technology, international integration and the media on equilibrium diversity and level of attention-seeking activities are shown. At the normative level, the issues of welfare, efficiency and optimal policy interventions are addressed. Copyright � The Author(s). Journal compilation � Royal Economic Society 2008.Download Info
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Bibliographic Info
Article provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 118 (2008)
Issue (Month): 532 (October)
Pages: 1596-1620
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Web page: http://www.res.org.uk/
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Avichai Snir & Daniel Levy, 2011.
"Shrinking Goods and Sticky Prices: Theory and Evidence,"
Emory Economics
1104, Department of Economics, Emory University (Atlanta).
- Snir, Avichai & Levy, Daniel, 2011. "Shrinking Goods and Sticky Prices: Theory and Evidence," MPRA Paper 29565, University Library of Munich, Germany.
- Avichai Snir & Daniel Levy, 2011. "Shrinking Goods and Sticky Prices: Theory and Evidence," Working Paper Series 17_11, The Rimini Centre for Economic Analysis.
- Avichai Snir & Daniel Levy, 2011. "Shrinking Goods and Sticky Prices: Theory and Evidence," Working Papers 2011-03, Department of Economics, Bar-Ilan University.
- Josef Falkinger, 2008. "A welfare analysis of "junk" information and spam filters," Working Papers 0811, University of Zurich, Socioeconomic Institute.
- Falkinger, Josef, 2008.
"Between Agora and Shopping Mall,"
IZA Discussion Papers
3524, Institute for the Study of Labor (IZA).
- Josef Falkinger, 2008. "Between Agora and Shopping Mall," Working Papers 0805, University of Zurich, Socioeconomic Institute.
- Josef Falkinger, 2012. "Em-powering economics: Some thoughts on policy and financial markets," ECON - Working Papers 093, Department of Economics - University of Zurich.
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