Optimal attention management: A tractable framework

B-Tier
Journal: Games and Economic Behavior
Year: 2022
Volume: 133
Issue: C
Pages: 170-180

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

A well-intentioned principal provides information to a rationally inattentive agent without internalizing the agent's cost of processing information. Whatever information the principal makes available, the agent may choose to ignore some. We study optimal information provision in a tractable model with quadratic payoffs where full disclosure is not optimal. We characterize incentive-compatible information policies, that is, those to which the agent willingly pays full attention. In a leading example with three states, optimal disclosure involves information distortion at intermediate costs of attention. As the cost increases, optimal information changes from downplaying the state to exaggerating the state.

Technical Details

RePEc Handle
repec:eee:gamebe:v:133:y:2022:i:c:p:170-180
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25