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Information Overload in a Network of Targeted Communication

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Author Info
Timothy Van Zandt () (INSEAD)

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Abstract

As the costs of generating and transmitting information fall, the main bottlenecks in communication are becoming the human receivers, who are overloaded with information. For networks of targeted communication, I discuss the meaning of information overload, provide a theoretical treatment as the outcome of strategic interaction between senders, and examine mechanisms for allocating the attention of receivers. Such mechanisms increase the cost of sending messages and thereby shift the task of screening messages from the receivers to the senders, who know the contents of the messages. If the communication cost is low, then a tax on sending messages benefits all the senders if either the tax is redistributed to them as lump-sum transfers or their information about the receivers is sufficiently accurate.

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Publisher Info
Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 35 (2004)
Issue (Month): 3 (Autumn)
Pages: 542-560
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Handle: RePEc:rje:randje:v:35:y:2004:3:p:542-560

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Schwartz, Alan & Wilde, Louis L., 1983. "Imperfect Information in Markets for Contract Terms: The Examples of Warranties and Security Interests," Working Papers 480, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  2. Grossman, Gene M & Shapiro, Carl, 1984. "Informative Advertising with Differentiated Products," Review of Economic Studies, Blackwell Publishing, vol. 51(1), pages 63-81, January. [Downloadable!] (restricted)
  3. Stegeman, Mark, 1991. "Advertising in Competitive Markets," American Economic Review, American Economic Association, vol. 81(1), pages 210-23, March. [Downloadable!] (restricted)
  4. Robert, Jacques & Stahl, Dale O, II, 1993. "Informative Price Advertising in a Sequential Search Model," Econometrica, Econometric Society, vol. 61(3), pages 657-86, May. [Downloadable!] (restricted)
  5. Diamond, Peter A., 1971. "A model of price adjustment," Journal of Economic Theory, Elsevier, vol. 3(2), pages 156-168, June. [Downloadable!] (restricted)
  6. Stahl, Dale O, II, 1989. "Oligopolistic Pricing with Sequential Consumer Search," American Economic Review, American Economic Association, vol. 79(4), pages 700-712, September. [Downloadable!] (restricted)
  7. Butters, Gerard R, 1977. "Equilibrium Distributions of Sales and Advertising Prices," Review of Economic Studies, Blackwell Publishing, vol. 44(3), pages 465-91, October. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Eilon Solan & Eran Reshef, 2005. "The Effect of Filters on Spam Mail," Discussion Papers 1402, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  2. Yeonbae Kim & Yuri Park & Jeong-Dong Lee & Jongsu Lee, 2006. "Using stated-preference data to measure the inconvenience cost of spam among Korean E-mail users," Applied Economics Letters, Taylor and Francis Journals, vol. 13(12), pages 795-800, October. [Downloadable!] (restricted)
  3. Simon P. Anderson & André de Palma, 2007. "Information Congestion: open access in a two-sided market," THEMA Working Papers 2007-10, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise. [Downloadable!]
  4. Benjamin Chiao & Jeffrey MacKie-Mason, 2006. "Using Uncensored Communication Channels to Divert Spam Traffic," Working Papers 06-20, NET Institute, revised Oct 2006. [Downloadable!]
  5. Eran Reshef & Eilon Solan, 2005. "Analysis of Do-Not-Spam Registry," Discussion Papers 1411, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  6. Anderson, Simon P & de Palma, André, 2009. "Competition for attention in the information (overload) age," CEPR Discussion Papers 7286, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  7. Simon P. Anderson & André De Palma, 2008. "Information Congestion," Working Papers hal-00349516_v1, HAL. [Downloadable!]
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  8. Nobuo Matsubayashi, 2008. "Product design rivalry: multiple-attributes approach to differentiation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(7), pages 555-563. [Downloadable!]
  9. Khim Yong, Goh & Kai-Lung, Hui & I.P.L. , Png, 2008. "Social Interaction, Observational Learning, and Privacy: the "Do Not Call" Registry," MPRA Paper 8225, University Library of Munich, Germany. [Downloadable!]
  10. Arjo Klamer & Hendrik P. van Dalen, 2002. "Attention and the art of scientific publishing," Journal of Economic Methodology, Taylor and Francis Journals, vol. 9(3), pages 289-315, November. [Downloadable!] (restricted)
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