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.

Chances are that you will recall the mileage of the Accord to be 42,000, or even 40,000, and the mileage on the Camry to be 67,000, or even 60,000.

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Topics:  Frontiers of economic research

Tags:  auctions, decision making, memory