Optimal Dynamic Allocation of Attention

S-Tier
Journal: American Economic Review
Year: 2019
Volume: 109
Issue: 8
Pages: 2993-3029

Authors (2)

Yeon-Koo Che (not in RePEc) Konrad Mierendorff

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

We consider a decision maker (DM) who, before taking an action, seeks information by allocating her limited attention dynamically over different news sources that are biased toward alternative actions. Endogenous choice of information generates rich dynamics: the chosen news source either reinforces or weakens the prior, shaping subsequent attention choices, belief updating, and the final action. The DM adopts a learning strategy biased toward the current belief when the belief is extreme and against that belief when it is moderate. Applied to consumption of news media, observed behavior exhibits an "echo-chamber" effect for partisan voters and a novel "anti-echo-chamber" effect for moderates.

Technical Details

RePEc Handle
repec:aea:aecrev:v:109:y:2019:i:8:p:2993-3029
Journal Field
General
Author Count
2
Added to Database
2026-01-25