STICERD Economic Theory Seminars
Misinterpreting Social Outcomes and Information Campaigns
Aislinn Bohren (University of Pennsylvania), joint with Daniel N. Hauser
Thursday 14 May 2020 15:30 - 17:00
Many of our seminars and public events this year will continue as in person or as hybrid (online and in person) events. Please check our website listings and Twitter feed @STICERD_LSE for updates.
Unless otherwise specified, in-person seminars are open to the public.
Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.
About this event
This paper explores learning in a setting with social perception biases. Individuals learn from others’ outcomes but have a misspecified model of their preferences. When individuals systematically overestimate the similarity between their own preferences and the preferences of others - exhibiting the false consensus effect - this can lead to incorrect learning, while when individuals systematically underestimate this similarity - exhibiting pluralistic ignorance -- this can prevent beliefs from converging. We explore how information campaigns - releasing (costly) information about the state - can counteract these inefficient choices. We show that the duration - temporary or permanent - and the target - correct inefficient action choices or reinforce efficient action choices - of the optimal information campaign depend crucially on the form of misspecification.
Related
Economic Theory Seminars are held on Thursdays in term time at 15:30-17:00, ONLINE or ONLINE AND IN PERSON at the same time.
Seminar organisers: Dr Andrew Ellis and Dr Christopher Sandmann.
For further information please contact Annie-Rose Nicholas by email: a.nicholas1@lse.ac.uk.
Please use this link to subscribe or unsubscribe to the Economic Theory seminars mailing list (etheory).