# Optimal Dynamic Allocation of Attention

## TL;DR

This paper models how decision makers allocate limited attention over biased news sources, leading to dynamic belief updates and behaviors like echo chambers and anti echo chambers, depending on their initial beliefs.

## Contribution

It introduces a dynamic model of attention allocation that explains complex belief dynamics and behaviors in news consumption, including echo and anti-echo chamber effects.

## Key findings

- Behavior exhibits echo-chamber effects for partisans.
- Moderates show anti-echo-chamber effects.
- Belief dynamics depend on initial extremity.

## Abstract

We consider a decision maker (DM) who, before taking an action, seeks information by allocating her limited attention dynamically over different news sources that are biased toward alternative actions. Endogenous choice of information generates rich dynamics: The chosen news source either reinforces or weakens the prior, shaping subsequent attention choices, belief updating, and the final action. The DM adopts a learning strategy biased toward the current belief when the belief is extreme and against that belief when it is moderate. Applied to consumption of news media, observed behavior exhibits an `echo-chamber' effect for partisan voters and a novel `anti echo-chamber' effect for moderates.