Attention Utility: Evidence From Individual Investors

Edika Quispe-Torreblanca, John Gathergood, George Loewenstein and Neil Stewart ()
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Neil Stewart: University of Warwick

No 2022-19, Discussion Papers from The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham

Abstract: We introduce attention utility, the hedonic pleasure or pain derived purely from paying attention to information, and diers from the news utility that arises from gaining new information. Two studies document selective attention to good news. The first study examines brokerage account login data to show that investors pay disproportionate attention to already-known positive information on their stocks. Through its effect on logins, this selective attention affects their trading activity. A second experimental study shows that investors are more likely to engage in a paid task that will involve attention to a prior investment if that investment has gained value.

Keywords: information utility; attention; login; investor behavior (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-exp and nep-upt
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Related works:
Working Paper: Attention Utility: Evidence from Individual Investors (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:not:notcdx:2022-19

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