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Markets for Attention: Will Postage for Email Help?

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Author Info

  • Shyam Sunder
  • Matthew Cronin
  • Darrin Filer
  • Robert Kraut
  • James Morris
  • Rahul Telang
  • Proceedings the

Abstract

Balancing the needs of information distributors and their audiences has grown harder in the age of the Internet. While the demand for attention continues to increase rapidly with the volume of information and communication, the supply of human attention is relatively fixed. Markets are a social institution for efficiently balancing supply and demand of scarce resources. Charging a price for sending messages may help discipline senders from demanding more attention than they are willing to pay for. Price may also help recipients estimate the value of a message before reading it. We report the results of two laboratory experiments to explore the consequences of a pricing system for electronic mail. Charging postage for email causes senders to be more selective and send fewer messages. However, recipients did not use the postage paid by senders as a signal of importance. These studies suggest markets for attention have potential, but their design needs more work.

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Bibliographic Info

Paper provided by Yale School of Management in its series Yale School of Management Working Papers with number ysm394.

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Date of creation: 01 Aug 2002
Date of revision: 01 Oct 2008
Handle: RePEc:ysm:somwrk:ysm394

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Related research

Keywords: Computer Mediated Communication; Electronic Mail; Empirical Studies; Economics; Markets; Social Impact; Spam;

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Cited by:
  1. Falkinger, Josef, 2007. "Attention economies," Journal of Economic Theory, Elsevier, vol. 133(1), pages 266-294, March.
  2. Shyam Sunder & Michael Maier & Karim Jamal, 2002. "Privacy in E-Commerce: Development of Reporting Standards, Disclosure and Assurance Services in an Unregulated Market," Yale School of Management Working Papers ysm359, Yale School of Management, revised 01 Dec 2002.
  3. Kai-Lung Hui & I.P.L. Png, 2005. "The Economics of Privacy," Industrial Organization 0505007, EconWPA, revised 29 Aug 2005.
  4. Oleg V. Pavlov & Nigel Melville, 2005. "Mitigating the Tragedy of the Digital Commons: the Case of Unsolicited Commercial Email," Computing in Economics and Finance 2005 231, Society for Computational Economics.
  5. Falkinger, Josef, 2005. "Limited Attention as the Scarce Resource in an Information-Rich Economy," IZA Discussion Papers 1538, Institute for the Study of Labor (IZA).

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