Abstract
We consider a theoretical model where an individual pays limited attention to decision relevant factors. Nudges increase attention to a factor, but can have, at the same time, attentional spillover effects to other factors. As a consequence, nudges can have detrimental effects on desired behavior and consumption utility. Further, measuring behavioral changes in the nudged domain sometimes does not yield the right conclusions about the effects of the nudge on utility — even with an additive separable utility function.
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