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he role of inattention in financial markets and asset pricing has received significant attention in the last few years. Its importance was brought home to me particularly forcefully on reading, in recent headline news, that the average stock holding time is now just twenty two seconds. Since humans, including even professional traders, are physically incapable of paying continuous attention to news and financial markets at these small time scales, it follows that inattention must pay a vital role in explaining at least the short term movements in the prices of these stocks and assets in general.