Theory Workshop/Microeconomics Seminar - Drew Fudenberg

07 Nov 2022
2.30pm - 3.30pm
Meade Room

Drew Fudenberg (MIT)

Title: "Selective Memory Equilibrium'', joint with Giacomo Lanzani and Philipp Strack.

Drew Fudenberg (MIT)


When agents are more likely to remember some experiences than others but
update beliefs as if the experiences they remember are the only ones that 
occurred, their limit strategy are selective memory equilibria. We illustrate how
selective memory equilibrium can be used to understand the long-run effects of
several well-documented memory biases. We then extend our analysis to cases
where the expected number of recalled experiences is bounded and experiences
that are recalled once are more likely to be recalled again, and to agents who are
only partially naıve about their selective memory.