What comes to mind

Nicola Gennaioli and Andrei Shleifer

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: We present a model of intuitive inference, called “local thinking,” in which an agent combines data received from the external world with information retrieved from memory to evaluate a hypothesis. In this model, selected and limited recall of information follows a version of the respresentativeness heuristic. The model can account for some of the evidence on judgment biases, including conjunction and disjunction fallacies, but also for several anomalies related to demand for insurance.

Keywords: Local thinking; representativeness; stereotypes; insurance. (search for similar items in EconPapers)
Date: 2009-02, Revised 2009-11
New Economics Papers: this item is included in nep-cbe and nep-ias
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: What Comes to Mind (2010)
Working Paper: What Comes to Mind (2010)
Working Paper: What Comes to Mind (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:1186

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