Rational allocation of attention in decision-making

Arbeitspapier

This paper proposes a model of attention allocation in decision-making. Attention has various definitions across the literature. Here, I understand attention as selecting information for costly processing. The paper investigates how an agent rationally allocates attention. The resulting attention allocation is context-dependent and influences choice quality. Next to inattention, two strategies of allocating attention prevail. These strategies share similarities with bottom-up and top-down attention - concepts reported in the psychological literature. Exploring firms' strategic considerations reveals an incentive for firms to produce high quality and highlight quality, if consumers expect low quality, and to exploit consumers by producing low quality and shrouding quality, if agents expect high quality.

Object Details

• ISBN: 978-3-943153-33-0
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: BERG Working Paper Series ; No. 114

Classification and Topics

• Classification: Wirtschaft ; Household Behavior: General ; Criteria for Decision-Making under Risk and Uncertainty ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Information and Product Quality; Standardization and Compatibility
• Subject: rational attention ; information-processing ; decision-making ; shrouding

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schmitt, Stefanie Yvonne
• Event: Veröffentlichung
• (who): Bamberg University, Bamberg Economic Research Group (BERG)
• (where): Bamberg
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/144610
• Last update: 10.03.2025, 11:42 AM CET