Attention Management

A-Tier
Journal: American Economic Review: Insights
Year: 2020
Volume: 2
Issue: 1
Pages: 17-32

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Attention costs can cause some information to be ignored and decisions to be imperfect. Can we improve the material welfare of a rationally inattentive agent by restricting his information in the first place? In our model, a well-intentioned principal provides information to an agent for whom information is costly to process, but the principal does not internalize this cost. We show that full information is universally optimal if and only if the environment comprises one issue. With multiple issues, attention management becomes optimal: the principal restricts some information to induce the agent to pay attention to other aspects.

Technical Details

RePEc Handle
repec:aea:aerins:v:2:y:2020:i:1:p:17-32
Journal Field
General
Author Count
3
Added to Database
2026-01-25