Understanding finite memory’s implications in economic decisions
Memory limitations are instrumental in individuals’ economic decisions. However, although memory limitations in the form of finite memory naturally arise in many aspects of economic life, formal economic models that incorporate the finite memory restriction are limited. The EU-funded Finite Memory project will explore the implications of finite memory for dynamic decision problems in choice theoretical and strategic economic contexts. These allow the market to obtain better predictions of consumers’ choices, unravel the observed equilibrium behaviour, and regulate markets to maximise social welfare. In addition, this understanding could provide new explanations for observed economic phenomena such as limited attention and price stickiness.
Funding SchemeMSCA-IF-GF - Global Fellowships
Partner organisations contribute to the implementation of the action, but do not sign the Grant Agreement.
08544-2001 Princeton, Nj
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