%0 Report
        %A Falkinger, Josef
        %T Limited Attention as the Scarce Resource in an Information-Rich Economy
        %D 2005
        %8 2005 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1538
        %U https://www.iza.org/publications/dp1538
        %X 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.
        %K diversity
%K limited attention
%K information-rich economies
%K media
%K behavioral equilibrium analysis