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Economists are beginning to use attention to explain economic decisions.2 As a nice example, if shoppers were to pay full attention to the price they paid for goods and services, we would predict that $4.00 CDs could be advertised on eBay as $0.01 plus $3.99 shipping or $4.00 plus no shipping and generate the same sales. But in reality, shoppers pay much more attention to the sale price and much less to the shipping cost, and so sellers make more sales in the former condition.3 The inherent scarcity of attention has also caught on in the business world; itβs described as the βattention economy,β where obtaining the attention of customers and employees who are constantly bombarded by information and technology is an essential element of commercial success.
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