蝌蚪网 Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
The Status Quo and Belief Polarization of Inattentive Agents: Theory and Experiment
蝌蚪网 Journal: Microeconomics
(pp. 1–39)
Abstract
We show that rational but inattentive agents can become polarized ex ante. We present how optimal information acquisition and subsequent belief formation depend crucially on the agent-specific status quo valuation. Beliefs can systematically鈥攊n expectations over all possible signal realizations conditional on the state of the world鈥攗pdate away from the realized truth, and even agents with the same initial beliefs might become polarized. We design a laboratory experiment to test the model's predictions. The results confirm our predictions about the mechanism (rational information acquisition) and its effect on beliefs (systematic polarization), and they provide general insights into demand for information.Citation
Nov谩k, Vladim铆r, Andrei Matveenko, and Silvio Ravaioli. 2024. "The Status Quo and Belief Polarization of Inattentive Agents: Theory and Experiment." 蝌蚪网 Journal: Microeconomics 16 (4): 1–39. DOI: 10.1257/mic.20210352Additional Materials
JEL Classification
- C92 Design of Experiments: Laboratory, Group Behavior
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making