Arbeitspapier
Attention and Selection Effects
Who participates in transactions when information about the consequences must be learned? We show theoretically that decision makers for whom acquiring and processing information is more costly respond more strongly to changes in incentive payments for participating and decide to participate based on worse information. With higher payments, the pool of participants thus consists of a larger proportion of individuals who have a worse understanding of the consequences of their decision. We conduct a behavioral experiment that confirms these predictions, both for experimental variation in the costs of information acquisition and for various measures of information costs, including school grades and cognitive ability. These findings are relevant for any transaction combining a payment for participation with uncertain yet learnable consequences.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 7091
- Klassifikation
-
Wirtschaft
Microeconomic Behavior: Underlying Principles
- Thema
-
rational inattention
incentives
selection effects
cognitive ability
experiment
repugnant transactions
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Ambuehl, Sandro
Ockenfels, Axel
Stewart, Colin
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Ambuehl, Sandro
- Ockenfels, Axel
- Stewart, Colin
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2018
Ähnliche Objekte (12)
Risk, time pressure, and selection effects
Risk, Time Pressure, and Selection Effects
Runaway Judges? Selection Effects and the Jury
Disability and disadvantage: selection, onset, and duration effects
Competitive balance and attention level effects: Theoretical considerations and preliminary evidence
Understanding neighbourhood effects: Selection bias and residential mobility
Attention please!: Health plan choice and (in-)attention
Selection bias, demographic effects, and ability effects in common value auction experiments
Repeated selection with heterogenous individuals and relative age effects
Repeated selection with heterogenous individuals and relative age effects
Selection and mode effects in risk preference elicitation experiments
Selection effects in producer-price setting
Risk, time pressure, and selection effects
Risk, Time Pressure, and Selection Effects
Runaway Judges? Selection Effects and the Jury
Disability and disadvantage: selection, onset, and duration effects
Competitive balance and attention level effects: Theoretical considerations and preliminary evidence
Understanding neighbourhood effects: Selection bias and residential mobility
Attention please!: Health plan choice and (in-)attention
Selection bias, demographic effects, and ability effects in common value auction experiments
Repeated selection with heterogenous individuals and relative age effects
Repeated selection with heterogenous individuals and relative age effects
Selection and mode effects in risk preference elicitation experiments
Selection effects in producer-price setting
Risk, time pressure, and selection effects
Risk, Time Pressure, and Selection Effects
Runaway Judges? Selection Effects and the Jury
Disability and disadvantage: selection, onset, and duration effects
Competitive balance and attention level effects: Theoretical considerations and preliminary evidence
Understanding neighbourhood effects: Selection bias and residential mobility
Attention please!: Health plan choice and (in-)attention
Selection bias, demographic effects, and ability effects in common value auction experiments
Repeated selection with heterogenous individuals and relative age effects
Repeated selection with heterogenous individuals and relative age effects
Selection and mode effects in risk preference elicitation experiments