Congratulations to Kemal Yıldız who has been awarded an MSCA global fellowship grant!On the basis of 2018 call evaluations, Dr. Kemal Yıldız from Economics department has been awarded MSCA global fellowship grant for three years. This global fellowship project will be jointly carried out in Princeton University and Bilkent University.
Memory limitations lie at the core of how agents store past experiences and make decisions. For example, consider a buyer choosing between two alternative brands of a good. In thinking about a brand, she may recall her past experiences, product reviews, or expert’s ratings, which induce a belief about the brand’s quality. In this process, the buyer may divide the quality scale into three categories such as high, medium, and low. Then, she may switch from one brand to another only if her belief about a brand’s quality moves from one category to another. Although memory limitations in the form of finite memory naturally arise in many facets of economic life, formal economic models that incorporate the finite memory restriction are rather limited. The project’s aim is to understand, from the perspectives of choice theory and game theory, the impact that finite memory has on dynamic decision making. These implications are significant to reach out a wide range of objectives such as better understanding of agents’ choices, unravelling the observed choice patterns, and regulating markets as to maximize social welfare.