• Andrei Shleifer


Competition for Attention. Andrei Shleifer, June 2014, Paper. "We present a model of market competition and product differentiation in which consumers’ attention is drawn to the products’ most salient attributes. Firms compete for consumer attention via their choices of quality and price. Strategic positioning of a product affects how all other products are perceived. With this attention externality, depending on the cost of producing quality some markets exhibit “commoditized” price salient equilibria, while others exhibit “de-commoditized” quality salient equilibria.." Link