- Series Information
- The Oxford Handbook of the Economics of Networks
- List of Contributors
- Introduction to the Handbook
- Networks: A Paradigm Shift for Economics?
- Networks in Economics: A Perspective on the Literature
- The Past and Future of Network Analysis in Economics
- Games Played on Networks
- Repeated Games and Networks
- Stochastic Network Formation and Homophily
- Network Formation Games
- Links and Actions in Interplay
- Conflict and Networks
- Key Players
- Some Challenges in the Empirics of the Effects of Networks
- Econometrics of Network Formation
- Small-World Networks
- Networked Experiments
- Field Experiments, Social Networks, and Development
- Networks in the Laboratory
- Diffusion in Networks
- Learning in Social Networks
- Financial Contagion in Networks
- Networks, Shocks, and Systemic Risk
- Informal Transfers in Social Networks
- Community Networks and Migration
- Social Networks and the Labor Market
- Attention in Organizations
- Models of Bilateral Trade in Networks
- Strategic Models of Intermediation Networks
- Networks in International Trade
- Targeting and Pricing in Social Networks
- Managing Social Interactions
- Economic Features of the Internet and Network Neutrality
Abstract and Keywords
By bringing together multiple workers, organizations can perform tasks that are outside the reach of any individual. In order to be productive, however, workers must coordinate their actions. Often this requires communicating information that is dispersed throughout the organization, but communication is time-consuming and costly. As Arrow (1974) noted, given the importance of communication both as an opportunity and as a cost, organizations will strive to optimize information flows between workers. As a result, communication patterns within an organization will not be random but will be shaped by the goals of the organization. An attention network describes how communication flows and, as a result, how decisions are made within the organization. This chapter reviews optimal and equilibrium attention networks.
Wouter Dessein, Eli Ginzberg Professor of Finance and Economics, Columbia Business School
Andrea Prat is Professor of Economics at the London School of Economics.
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