Dolgin also states that a superfluidity of information may hinder the decision making of an individual who keeps searching and comparing products as long as it promises to provide more than it is using up.One application treats various forms of information (spam, advertising) as a form of pollution or 'detrimental externality'.Thus sending out as much spam as possible is a rational strategy: even if only 0.001% of recipients (1 in 100,000) is converted into a sale, a spam campaign can be profitable (Mangalindan 2002).Spammers are demanding valuable attention from potential customers, but they are avoiding paying a fair price for this attention due to the current architecture of e-mail systems.This means that the site will not run as smoothly/quickly as possible and could result in certain functionality not working as designed. Attention economics is an approach to the management of information that treats human attention as a scarce commodity, and applies economic theory to solve various information management problems.
Hence a wealth of information creates a poverty of attention and a need to allocate that attention efficiently among the overabundance of information sources that might consume it" (Simon 1971, pp. He noted that many designers of information systems incorrectly represented their design problem as information scarcity rather than attention scarcity, and as a result they built systems that excelled at providing more and more information to people, when what was really needed were systems that excelled at filtering out unimportant or irrelevant information (Simon 1996, pp. In recent years, Simon's characterization of the problem of information overload as an economic one has become more popular. Some writers have even speculated that "attention transactions" will replace financial transactions as the focus of our economic system (Goldhaber 1997, Franck 1999).
Put simply by Matthew Crawford, "Attention is a resource—a person has only so much of it." Attention is focused mental engagement on a particular item of information.
Items come into our awareness, we attend to a particular item, and then we decide whether to act. 20) A strong trigger of this effect is that the mental capability of humans is limited and the receptiveness of information is hence limited as well.
A market-based approach to controlling externalities was outlined in Ronald Coase's The Problem of Social Cost (Coase 1960).
This evolved from an article on the Federal Communications Commission (Coase 1959), in which Coase claimed that radio frequency interference is a negative externality that could be controlled by the creation of property rights.
Since the cost to transmit advertising to consumers is now sufficiently low that more ads can be transmitted to a consumer (e.g.