Limited attention as the scarce resource in an information-rich economy
By: by Josef Falkinger.
Series: Discussion paper ;; no. 1538; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1538
Publisher: IZA
Published: 2005
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Information society.; Attention.; Scarcity.; Equilibrium (Economics)
Description: "This paper uses basic empirical facts from attention and perception psychology for a behavioral approach to equilibrium analysis at the industry and the macroeconomic level. The paper endogenously determines whether an economy is information-rich and whether scarcity of attention complements economic scarcity. A conventional economic equilibrium results if subjects have free attention capacity. At the positive level, the impacts of IT-progress, international integration and media on equilibrium diversity and level of attention-seeking activities are shown. At the normative level, welfare, efficiency and optimal policy interventions are characterized. Finally, behavioral effects of intensified attention-seeking on market power, sectoral economic structure and work-leisure choice are considered"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 4/15/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.