Information processing under memory constraint

Human memory is limited and humans tend to distort early information subconsciously in many memory recall situations. This paper aims to address the situation of memory distortion by constructing a model that will yield the optimal distortion in information processing, minimizing the cost in the con...

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Main Authors: Chua, Woan Jen, Lim, Vivien Yu Ling, Lim, Zhi Qin
Other Authors: Au Pak Hung
Format: Final Year Project
Language:English
Published: 2015
Subjects:
Online Access:http://hdl.handle.net/10356/62776
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-627762019-12-10T12:07:33Z Information processing under memory constraint Chua, Woan Jen Lim, Vivien Yu Ling Lim, Zhi Qin Au Pak Hung School of Humanities and Social Sciences DRNTU::Social sciences::Economic theory Human memory is limited and humans tend to distort early information subconsciously in many memory recall situations. This paper aims to address the situation of memory distortion by constructing a model that will yield the optimal distortion in information processing, minimizing the cost in the context of limited memory. Two mathematical models will be built using economics statistical concepts to understand human behaviours in the recalling and processing of information, given the scenarios of perfect memory and limited memory. Results show that more weight will be placed on the signal with higher accuracy and less distortion is done when individuals are familiar with the true state. When there is a higher probability of forgetting the first signal, there will be higher distortion to include more of the first signal to obtain a more informed decision. However, when there is cost of distortion involved, the level of distortion will be lower. In addition, the models explain implications where prior expectations affect experience and first impressions matter. Through these implications, companies will be able to better understand the importance of advertising and packaging as expectations and impressions will affect the decision making of consumer. Bachelor of Arts 2015-04-29T01:59:59Z 2015-04-29T01:59:59Z 2015 2015 Final Year Project (FYP) http://hdl.handle.net/10356/62776 en Nanyang Technological University 57 p. application/pdf
institution Nanyang Technological University
building NTU Library
country Singapore
collection DR-NTU
language English
topic DRNTU::Social sciences::Economic theory
spellingShingle DRNTU::Social sciences::Economic theory
Chua, Woan Jen
Lim, Vivien Yu Ling
Lim, Zhi Qin
Information processing under memory constraint
description Human memory is limited and humans tend to distort early information subconsciously in many memory recall situations. This paper aims to address the situation of memory distortion by constructing a model that will yield the optimal distortion in information processing, minimizing the cost in the context of limited memory. Two mathematical models will be built using economics statistical concepts to understand human behaviours in the recalling and processing of information, given the scenarios of perfect memory and limited memory. Results show that more weight will be placed on the signal with higher accuracy and less distortion is done when individuals are familiar with the true state. When there is a higher probability of forgetting the first signal, there will be higher distortion to include more of the first signal to obtain a more informed decision. However, when there is cost of distortion involved, the level of distortion will be lower. In addition, the models explain implications where prior expectations affect experience and first impressions matter. Through these implications, companies will be able to better understand the importance of advertising and packaging as expectations and impressions will affect the decision making of consumer.
author2 Au Pak Hung
author_facet Au Pak Hung
Chua, Woan Jen
Lim, Vivien Yu Ling
Lim, Zhi Qin
format Final Year Project
author Chua, Woan Jen
Lim, Vivien Yu Ling
Lim, Zhi Qin
author_sort Chua, Woan Jen
title Information processing under memory constraint
title_short Information processing under memory constraint
title_full Information processing under memory constraint
title_fullStr Information processing under memory constraint
title_full_unstemmed Information processing under memory constraint
title_sort information processing under memory constraint
publishDate 2015
url http://hdl.handle.net/10356/62776
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