Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/234024 
Year of Publication: 
2021
Series/Report no.: 
Working Paper No. 383
Publisher: 
University of Zurich, Department of Economics, Zurich
Abstract: 
We propose a model of competitive attention based on two key premises: i) People have limited information processing capacities and ii) consideration sets are formed according to relative salience. The equilibrium predictions we obtain can help to understand, and connect, diverse empirical phenomena, such as the Paradox of Choices, the Power Law dispersions of key market data (sales, profits, online clicks,...), the relation between advertising expenditures and market shares, the evolution of market inequality, or why evidence favoring a "Long Tail" effect is mixed at best.
Subjects: 
Attention
choice overload
consideration sets
Power Law
Superstar
Long Tail
Matthew Effect
JEL: 
D91
D40
D43
E71
L11
M37
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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