Attention Manipulation and Information Overload
When a decision-maker’s attention is limited, her decisions depend on what she focuses on. This gives interested parties an incentive to manipulate not only the substance of communication but also the decision-maker’s attention allocation. This paper models such attention manipulation. In its presence, competitive information supply can reduce the decision-maker’s knowledge by causing information overload. Further, a single information provider may deliberately induce information overload to conceal information. These findings, pertinent to consumer protection, suggest a role for rules that restrict communication, mandate not only the content but also the format of disclosure, and regulate product design.
|Date of creation:||13 Dec 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
More information through EDIRC
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.:
- Archishman Chakraborty & Rick Harbaugh, 2004.
"Comparative Cheap Talk,"
2004-08, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- Paul R. Milgrom, 1981.
"Good News and Bad News: Representation Theorems and Applications,"
Bell Journal of Economics,
The RAND Corporation, vol. 12(2), pages 380-391, Autumn.
- Paul R. Milgrom, 1979. "Good Nevs and Bad News: Representation Theorems and Applications," Discussion Papers 407R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Ricardo Alonso & Wouter Dessein & Niko Matouschek, 2008. "When does coordination require centralization?," LSE Research Online Documents on Economics 58664, London School of Economics and Political Science, LSE Library.
- Sims, Christopher A., 2003. "Implications of rational inattention," Journal of Monetary Economics, Elsevier, vol. 50(3), pages 665-690, April.
- Paul R. Milgrom & John Roberts, 1985.
"Relying on the Information of Interested Parties,"
Cowles Foundation Discussion Papers
749, Cowles Foundation for Research in Economics, Yale University.
- Grossman, Sanford J, 1981. "The Informational Role of Warranties and Private Disclosure about Product Quality," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 461-83, December.
- Thomas Eisensee & David Strömberg, 2007. "News Droughts, News Floods, and U.S. Disaster Relief," The Quarterly Journal of Economics, MIT Press, vol. 122(2), pages 693-728, 05.
- Ricardo Alonso & Wouter Dessein & Niko Matouschek, 2008.
"When Does Coordination Require Centralization?,"
American Economic Review,
American Economic Association, vol. 98(1), pages 145-79, March.
- Bernard Caillaud & Jean Tirole, 2007.
"Consensus Building: How to Persuade a Group,"
American Economic Review,
American Economic Association, vol. 97(5), pages 1877-1900, December.
When requesting a correction, please mention this item's handle: RePEc:hhs:iuiwop:0995. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elisabeth Gustafsson)
If references are entirely missing, you can add them using this form.