Munich Personal RePEc Archive

The Value of (Bounded) Memory in a Changing World

Monte, Daniel and Said, Maher (2013): The Value of (Bounded) Memory in a Changing World.

This is the latest version of this item.

[thumbnail of MPRA_paper_47595.pdf]

Download (490kB) | Preview


This paper explores the value of memory in decision making in dynamic environments. We examine the decision problem faced by an agent with bounded memory who receives a sequence of signals from a partially observable Markov decision process. We characterize environments in which the optimal memory consists of only two states. In addition, we show that the marginal value of additional memory states need not be positive, and may even be negative in the absence of free disposal.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.