@techreport{Falkinger2005Limited,
abstract = {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 ITprogress,
international integration and media on equilibrium diversity and level of attentionseeking
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.},
author = {Josef Falkinger},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D80; L10; D50; 330; limited attention; information-rich economies; media; diversity; behavioral equilibrium analysis},
language = {eng},
number = {1538},
title = {Limited Attention as the Scarce Resource in an Information-rich Economy},
type = {IZA Discussion paper series},
url = {http://hdl.handle.net/10419/21314},
year = {2005}
}
