Getting to theTop of Mind: How Reminders Increase Saving
Published By: BREAD on eSS | Published Date: April, 21 , 2010We 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.[Working Paper No. 262]
Author(s): Dean Karlan, Sendhil Mullainathan, Margaret McConnell, Jonathan Zinman | Posted on: Jun 21, 2010 | Views(952) | Download (717)