Motivated Memory in Economics—A Review

Motivated reasoning refers to the idea that people hold certain beliefs about themselves or world due their desire do so, rather than striving for accuracy. This type of belief formation can lead overconfidence and polarization, as well facilitate immoral behavior at both individual collective levels. One supply-side mechanisms motivated is memory, selective retrieval past experiences information based on self-serving criteria. In this article, we review still young economics literature memory. Summarizing theoretical empirical work, highlight key results has produced. We also discuss open questions potentially exciting avenues future research in area.