Publication:

What Comes to Mind

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2010

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Oxford University Press (OUP)
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Gennaioli, N., and A. Shleifer. 2010. “What Comes to Mind.” The Quarterly Journal of Economics 125 (4) (November 1): 1399–1433. doi:10.1162/qjec.2010.125.4.1399.

Abstract

We present a model of judgment under uncertainty, in which an agent combines data received from the external world with information retrieved from memory to evaluate a hypothesis. We focus on what comes to mind immediately, as the agent makes quick, intuitive evaluations. Because the automatic retrieval of data from memory is both limited and selected, the agent's evaluations may be severely biased. This framework can account for some of the evidence on heuristics and biases presented by Kahneman and Tversky, including conjunction and disjunction fallacies.

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