Limited attention costs: Sometimes driving a mile costs $200

Nicola Lacetera, Devin Pope, Justin Sydnor, 20 May 2011

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Imagine that you are in the process of buying a used car. You are considering a three-year-old Honda Accord, with 42,187 miles, and a five-year-old Toyota Camry, with 67,812 miles.

Now, close your eyes and try to remember the exact mileage of the two cars.

Topics: Frontiers of economic research
Tags: auctions, decision making, memory

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