CORDIS Project
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This project investigates the concept of limited attention in economic decision-making. It explores how attention allocation affects investors, consumers, and voters, aiming to understand its implications for public policy and strategic interactions.
Attention is a scarce cognitive resource.
How economic agents allocate their LIMITED ATTENTION has profound implication for economic policy.
Investors may not pay attention to differences in country specific default risks in sovereign debt until something triggers attention to this issue.
Then we might change from a good equilibrium of sustainable debt to bad equilibrium of default.
Consumers may not be able to pay attention to all details and become vulnerable to exploitation by strategic agent…
OTTO-FRIEDRICH-UNIVERSITAET BAMBERG
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