Biases in Information Selection and Processing: Survey Evidence from the Pandemic

Author:

Faia Ester1,Fuster Andreas2,Pezone Vincenzo3,Zafar Basit4

Affiliation:

1. Goethe University Frankfurt and CEPR faia@wiwi.uni-frankfurt.de

2. EPFL, Swiss Finance Institute and CEPR andreas.fuster@epfl.ch

3. Tilburg University v.pezone@tilburguniversity.edu

4. University of Michigan and NBER basitak@gmail.com

Abstract

Abstract We conduct two survey experiments to study which information people choose to consume and how it affects their beliefs. In the first experiment, respondents choose between optimistic and pessimistic article headlines related to the COVID-19 pandemic, and are then randomly shown one of the articles. Respondents with more pessimistic prior beliefs tend to prefer pessimistic headlines, providing evidence of confirmation bias. Additionally, respondents assigned to the less preferred article discount its information. The second experiment studies the role of partisan views, uncovering strong source dependence: news source revelation further distorts information acquisition, eliminating the role of priors in article choice.

Publisher

MIT Press - Journals

Subject

Economics and Econometrics,Social Sciences (miscellaneous)

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