People often have imperfect memory and only remember some of their past experiences, and their memory can be selective, in that they are more likely to remember some events than others. Moreover, their mem- ory is stochastic. "Selective Memory Equilibrium" considers a selective memory model where the number of recalled experiences goes to infinity as the agent’s sample size increases, and agents are unaware of their selective memory, so they update their beliefs as if the experiences they remember are the only ones that occurred."Learning and Limited Memory" considers a similar model, except that the expected number of instances recalled by the agent remains bounded as their number of past experiences goes to infinity It also experiences that were remembered in one period to be more likely to be recalled in the next one.

This talk is presented by the Economic Theory Seminar, sponsored by the Department of Economics with generous gifts given through the Mark Harms Fund and the Economics Strategic Fund.