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Content archived on 2024-05-28

Evolutionary, Social, and Strategic Aspects of limited Attention and Economic Policy Implications

Objective

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 agents. Voters’ limited attention influences elections and ultimately public policies.
This project seeks a deeper understanding of LIMITED ATTENTION and its economic consequences. Part 1 investigates the evolutionary foundations of limited attention, seeking a better understanding of the evolution of allocating limited attention. Furthermore, we consider in how far limited cognition can provided a framework for an evolutionary foundations of prospect theory, particularly for probability weighting. In addition, we investigate the evolution of paying attention to different characteristics. Part 2 focuses on social and strategic aspects of allocating limited attention and the implications for public policy. When is paying attention a strategic complement (i.e. you want to pay attention to an issue when others pay attention to it) and when a strategic substitute (i.e. if other pay attention to this issue, you can focus your attention on other things)? How might attentive players exploit inattentive players and how can inattentive agents protect themselves. A better understanding of these strategic aspects of limited attention will have important positive and normative implications for public policy and interesting applications as illustrated in the previous examples.
The project is a crucial part of reintegrating the researcher into the European research network, facilitating joint work with his coauthors across Europe, and keeping his international connections and collaborations.

Fields of science (EuroSciVoc)

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Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

FP7-PEOPLE-2012-CIG
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Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

MC-CIG - Support for training and career development of researcher (CIG)

Coordinator

OTTO-FRIEDRICH-UNIVERSITAET BAMBERG
EU contribution
€ 100 000,00
Address
KAPUZINERSTRASSE 16
96047 Bamberg
Germany

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Region
Bayern Oberfranken Bamberg, Kreisfreie Stadt
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

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