Channeled Attention and Stable Errors

This working paper develops a theory of “channeled attention,” in which individuals systematically focus on limited dimensions of information, leading to persistent and predictable errors in judgment and decision-making. The authors show how stable biases can emerge even when people learn from experience, because attention is directed toward certain signals while other relevant information is overlooked. The framework has implications for behavioral economics, finance, policy communication, and organizational decision-making.