TY  - RPRT
        AU  - Falkinger, Josef
        TI  - Limited Attention as the Scarce Resource in an Information-Rich Economy
        PY  - 2005/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1538
        UR  - https://www.iza.org/publications/dp1538
        AB  - 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.
        KW  - diversity
KW  - limited attention
KW  - information-rich economies
KW  - media
KW  - behavioral equilibrium analysis
        ER  -