The economic concept of the second-best involves the idea that multiple simultaneous deviations from a hypothetical first-best optimum may be optimal once the first-best itself can no longer be achieved, since one distortion may partially compensate for another. Within an evolutionary framework,...

The economic concept of the second-best involves the idea that multiple simultaneous deviations from a hypothetical first-best optimum may be optimal once the first-best itself can no longer be achieved, since one distortion may partially compensate for another. Within an evolutionary framework,...

This dissertation analyzes economic implications of limited attention. The dissertation consists of an introduction (Chapter 1) and four independent articles (Chapter 2-5). The different articles, from the field of microeconomic theory, focus on different aspects of limited attention. The...