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Getting to the top of mind : how reminders increase saving

Author: Dean S Karlan; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, ©2010.
Series: Working paper series (National Bureau of Economic Research), no. 16205.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
We develop and test a simple model of limited attention in intertemporal choice. The model posits that individuals fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry generates some predictions that overlap with models of present-bias. Our model also generates the unique predictions that reminders may increase saving, and that reminders will be  Read more...
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Additional Physical Format: Print version:
Getting to the top of mind.
Cambridge, Mass. : National Bureau of Economic Research, ©2010
(DLC) 2010656363
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Dean S Karlan; National Bureau of Economic Research.
OCLC Number: 650096507
Description: 1 online resource (40 pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 16205.
Responsibility: Dean Karlan [and others].

Abstract:

We develop and test a simple model of limited attention in intertemporal choice. The model posits that individuals fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry generates some predictions that overlap with models of present-bias. Our model also generates the unique predictions that reminders may increase saving, and that reminders will be more effective when they increase the salience of a specific expenditure. We find support for these predictions in three field experiments that randomly assign reminders to new savings account holders.

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