A Neuroeconomic Theory of Memory Retrieval

We propose a theory of “optimal memory management” that unveils causal relationships between memory systems and the characteristics of the information retrieved. Our model shows that if the declarative memory is more accurate but also more costly than the procedural memory, then it is optimal to retrieve exceptional experiences with the former and average experiences with the latter. The theory offers some other testable predictions: (i) decisions are closer to original experiences when the declarative memory is invoked; (ii) a memory system is more likely to be employed to encode and retrieve information if its accuracy increases or its cost decreases; and (iii) the declarative system is more likely to be invoked when the importance of recalling information accurately increases.