Getting to the Top of Mind: How Reminders Increase Saving

Sendhil Mullainathan, Jonathan Zinman, Dean Karlan and Margaret McConnell

No 7907, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We develop and test a simple model of limited attention in intertemporal choice. The model posits that individuals fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry generates some predictions that overlap with models of present-bias. Our model also generates the unique predictions that reminders may increase saving, and that reminders will be more effective when they increase the salience of a specific expenditure. We find support for these predictions in three field experiments that randomly assign reminders to new savings account holders.

Keywords: Attention; Intertemporal consumer choice; Savings (search for similar items in EconPapers)
JEL-codes: D91 E21 (search for similar items in EconPapers)
Date: 2010-06
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Citations: View citations in EconPapers (88)

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Related works:
Working Paper: Getting to the Top of Mind: How Reminders Increase Saving (2010)
Working Paper: Getting to the Top of Mind: How Reminders Increase Saving (2010)
Working Paper: Getting to the Top of Mind: How Reminders Increase Saving (2010)
Working Paper: Getting to the Top of Mind: How Reminders Increase Saving (2010)
Working Paper: Getting to theTop of Mind: How Reminders Increase Saving (2010)
Working Paper: Getting to the Top of Mind: How Reminders Increase Saving (2010)
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