Memory and discounting : theory and evidence
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 disc...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2019
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/104720 http://hdl.handle.net/10220/48607 |
| _version_ | 1811679150973386752 |
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| author | Bao, Te Dai, Yun Yu, Xiaohua |
| author2 | School of Social Sciences |
| author_facet | School of Social Sciences Bao, Te Dai, Yun Yu, Xiaohua |
| author_sort | Bao, Te |
| collection | NTU |
| description | 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. |
| first_indexed | 2024-10-01T03:04:35Z |
| format | Journal Article |
| id | ntu-10356/104720 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:04:35Z |
| publishDate | 2019 |
| record_format | dspace |
| spelling | ntu-10356/1047202020-03-07T13:00:26Z Memory and discounting : theory and evidence Bao, Te Dai, Yun Yu, Xiaohua School of Social Sciences Intertemporal Consumption Memory Utility DRNTU::Social sciences::Economic theory 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. MOE (Min. of Education, S’pore) Accepted version 2019-06-07T08:19:53Z 2019-12-06T21:38:14Z 2019-06-07T08:19:53Z 2019-12-06T21:38:14Z 2018 Journal Article 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 0165-1889 https://hdl.handle.net/10356/104720 http://hdl.handle.net/10220/48607 10.1016/j.jedc.2018.01.016 en Journal of Economic Dynamics and Control © 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. 23 p. application/pdf |
| spellingShingle | Intertemporal Consumption Memory Utility DRNTU::Social sciences::Economic theory Bao, Te Dai, Yun Yu, Xiaohua Memory and discounting : theory and evidence |
| title | Memory and discounting : theory and evidence |
| title_full | Memory and discounting : theory and evidence |
| title_fullStr | Memory and discounting : theory and evidence |
| title_full_unstemmed | Memory and discounting : theory and evidence |
| title_short | Memory and discounting : theory and evidence |
| title_sort | memory and discounting theory and evidence |
| topic | Intertemporal Consumption Memory Utility DRNTU::Social sciences::Economic theory |
| url | https://hdl.handle.net/10356/104720 http://hdl.handle.net/10220/48607 |
| work_keys_str_mv | AT baote memoryanddiscountingtheoryandevidence AT daiyun memoryanddiscountingtheoryandevidence AT yuxiaohua memoryanddiscountingtheoryandevidence |