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Displacement theory sees information as being lost from the short-term memory as it has a limited capacity, between 5 and 9 items and so new information displaces the old information. It explains forgetting in STM and proposes that it is due to a lack of availability. It supplies a simple explanation of forgetting since it is limited in it is capacity, Miller recommended it to be 7+/-2 items. STM only holds a small amount of information. When STM gets full, new information replaces old information and takes it is place. Then the old information is forgotten in STM. It is supposed that information that had been in STM for long is first to be replaces by new information.

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