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Title: Memory and discounting : theory and evidence
Authors: Bao, Te
Dai, Yun
Yu, Xiaohua
Keywords: Intertemporal Consumption
Memory Utility
DRNTU::Social sciences::Economic theory
Issue Date: 2018
Source: Bao, T., Dai, Y., & Yu, X. (2018). Memory and discounting : theory and evidence. Journal of Economic Dynamics and Control, 88, 21-30. doi:10.1016/j.jedc.2018.01.016
Series/Report no.: Journal of Economic Dynamics and Control
Abstract: Heterogeneous memory capacity is largely neglected in the economics literature, although it may have profound economic implications. Adopting the concept of “memory utility” proposed by Gilboa, Postlewaite, and Samuelson (2016), we explore the relationship between memory capacity and individual discounting behavior by building a simple two-period model and comparing its predictions with experimental data. Both theoretical and experimental evidence confirm that memory capacity and discount rates are positively correlated.
ISSN: 0165-1889
DOI: 10.1016/j.jedc.2018.01.016
Rights: © 2018 Elsevier B.V. All rights reserved. This paper was published in Journal of Economic Dynamics and Control and is made available with permission of Elsevier B.V.
Fulltext Permission: open
Fulltext Availability: With Fulltext
Appears in Collections:SSS Journal Articles

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