Memory, Attention, and Choice

Pedro Bordalo, Nicola Gennaioli and Andrei Shleifer

Working Paper from Harvard University OpenScholar

Abstract: We present a theory of consumer choice that combines elements of limited recall and of allocationof attention distorted by salience. The theory helps clarify and organize a variety of evidence dealingwith consumer reaction to information, including surprises in quality and prices, unshrouding ofhidden attributes such as taxes or maintenance costs, and reminders. Our model explains howconsumers under or overreact to information, depending on what draws their attention. It also yieldsa normative analysis of reaction to reminders which adjusts the \sucient statistic" methodology.

Date: 2015-03
New Economics Papers: this item is included in nep-cta and nep-mic
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Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Memory, Attention, and Choice* (2020)
Working Paper: Memory, Attention, and Choice (2017)
Working Paper: Memory, Attention, and Choice (2017)
Working Paper: Memory, Attention and Choice (2015)
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