Index Numbers and Information Networks

This paper introduces a new approach for studying behaviour in information networks. Index number theory, which has been developed in the context of comparing income and prices across countries, regions or over time, is used to derive indexes of information consumption. In particular, we construct indexes of real attention, which account for the fact that different information consumers might have different costs (in terms of attention) of consuming the same information source. An application using clickstream data for nearly 1000 websites is provided