Competitive attention, Superstars and the Long Tail

Andreas Hefti and Julia Lareida
Authors registered in the RePEc Author Service: Julia Grünseis

No 383, ECON - Working Papers from Department of Economics - University of Zurich

Abstract: We propose a model of competitive attention based on two key premises: i) People have limited information processing capacities and ii) consideration sets are formed according to relative salience. The equilibrium predictions we obtain can help to understand, and connect, diverse empirical phenomena, such as the Paradox of Choices, the Power Law dispersions of key market data (sales, profits, online clicks,...), the relation between advertising expenditures and market shares, the evolution of market inequality, or why evidence favoring a “Long Tail” effect is mixed at best.

Keywords: Attention; choice overload; consideration sets; Power Law; Superstar; Long Tail; Matthew Effect (search for similar items in EconPapers)
JEL-codes: D40 D43 D91 E71 L11 M37 (search for similar items in EconPapers)
Date: 2021-04
New Economics Papers: this item is included in nep-com and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zur:econwp:383

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