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Diverging Opinions

Author

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  • James Andreoni
  • Tymofiy Mylovanov

Abstract

People often see the same evidence but draw opposite conclusions, becoming polarized over time. More surprisingly, disagreements persist even when they are commonly known. We derive a model and present an experiment showing that opinions can diverge when one-dimensional opinions are formed from two-dimensional information. When subjects are given sufficient information to reach agreement, however, disagreement persists. Subjects discount information when it is filtered through the actions of others, but not when it is presented directly, indicating that common knowledge of disagreement may be the result of excessive skepticism about the decision-making skills of others. (JEL C92, D82, D83)

Suggested Citation

  • James Andreoni & Tymofiy Mylovanov, 2012. "Diverging Opinions," American Economic Journal: Microeconomics, American Economic Association, vol. 4(1), pages 209-232, February.
    • Handle: RePEc:aea:aejmic:v:4:y:2012:i:1:p:209-32
    Note: DOI: 10.1257/mic.4.1.209
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    References listed on IDEAS

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    Cited by:

    1. Olszewski, Wojciech, 2021. "Preferences and information processing under vague information," Journal of Mathematical Economics, Elsevier, vol. 94(C).
    2. Isabel Melguizo, 2019. "Homophily and the Persistence of Disagreement," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1400-1424.
    3. Cheng, Ing-Haw & Hsiaw, Alice, 2022. "Distrust in experts and the origins of disagreement," Journal of Economic Theory, Elsevier, vol. 200(C).
    4. Hassan Afrouzi & Carolina Arteaga & Emily Weisburst, 2022. "Can Leaders Persuade? Examining Movement in Immigration Beliefs," CESifo Working Paper Series 9593, CESifo.
    5. Daniel J. Benjamin, 2018. "Errors in Probabilistic Reasoning and Judgment Biases," NBER Working Papers 25200, National Bureau of Economic Research, Inc.
    6. Isaac Loh & Gregory Phelan, 2019. "Dimensionality And Disagreement: Asymptotic Belief Divergence In Response To Common Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(4), pages 1861-1876, November.
    7. Benoît, Jean-Pierre & Dubra, Juan, 2014. "A Theory of Rational Attitude Polarization," MPRA Paper 60129, University Library of Munich, Germany.
    8. Börgers, Tilman & Hernando-Veciana, Angel & Krähmer, Daniel, 2013. "When are signals complements or substitutes?," Journal of Economic Theory, Elsevier, vol. 148(1), pages 165-195.
    9. Marcos Fernandes, 2019. "Confirmation Bias in Social Networks," Department of Economics Working Papers 19-05, Stony Brook University, Department of Economics.
    10. Jean-Pierre Benoît & Juan Dubra, 2018. "When do populations polarize? An explanation," Documentos de Trabajo/Working Papers 1801, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    11. Le Yaouanq, Yves, 2018. "A Model of Ideological Thinking," Rationality and Competition Discussion Paper Series 85, CRC TRR 190 Rationality and Competition.
    12. Stone, Daniel, 2018. ""Unmotivated Bias" and Partisan Hostility: Empirical Evidence," SocArXiv hr5ba, Center for Open Science.
    13. Stone, Daniel, 2018. "Just a big misunderstanding? Bias and Bayesian affective polarization," SocArXiv 58sru, Center for Open Science.
    14. Azzimonti, Marina & Fernandes, Marcos, 2023. "Social media networks, fake news, and polarization," European Journal of Political Economy, Elsevier, vol. 76(C).
    15. Ceren Baysan, 2017. "Can More Information Lead to More Voter Polarization? Experimental Evidence from Turkey," 2017 Papers pba1551, Job Market Papers.
    16. Jeong, Daeyoung, 2019. "Using cheap talk to polarize or unify a group of decision makers," Journal of Economic Theory, Elsevier, vol. 180(C), pages 50-80.
    17. Piotr Evdokimov & Umberto Garfagnini, 2023. "Cognitive Ability and Perceived Disagreement in Learning," Rationality and Competition Discussion Paper Series 381, CRC TRR 190 Rationality and Competition.
    18. Thakor, Anjan V., 2015. "Strategic information disclosure when there is fundamental disagreement," Journal of Financial Intermediation, Elsevier, vol. 24(2), pages 131-153.
    19. Stone, Daniel F., 2019. "“Unmotivated bias” and partisan hostility: Empirical evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 79(C), pages 12-26.
    20. Daniel F. Stone, 2016. "A few bad apples: Communication in the presence of strategic ideologues," Southern Economic Journal, John Wiley & Sons, vol. 83(2), pages 487-500, October.

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    More about this item

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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