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Correlation neglect in voting decisions: An experiment

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  • Moser, Johannes
  • Wallmeier, Niklas

Abstract

We investigate the influence of correlation neglect on information aggregation when a voter has to weigh external information about profitability against her risk preferences. In an online experiment, subjects are members of a group and vote either for a fixed payment or for a lottery of the same expected value. They receive signals which alternative may result in an additional bonus or penalty for their group. Our results suggest that subjects flip their vote because of correlation neglect.

Suggested Citation

  • Moser, Johannes & Wallmeier, Niklas, 2021. "Correlation neglect in voting decisions: An experiment," Economics Letters, Elsevier, vol. 198(C).
    • Handle: RePEc:eee:ecolet:v:198:y:2021:i:c:s016517652030416x
    DOI: 10.1016/j.econlet.2020.109656
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    References listed on IDEAS

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    1. Benjamin Enke & Florian Zimmermann, 2019. "Correlation Neglect in Belief Formation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 313-332.
    2. Pietro Ortoleva & Erik Snowberg, 2015. "Overconfidence in Political Behavior," American Economic Review, American Economic Association, vol. 105(2), pages 504-535, February.
    3. Armin Falk & Anke Becker & Thomas Dohmen & David Huffman & Uwe Sunde, 2023. "The Preference Survey Module: A Validated Instrument for Measuring Risk, Time, and Social Preferences," Management Science, INFORMS, vol. 69(4), pages 1935-1950, April.
    4. Gilat Levy & Ronny Razin, 2015. "Correlation Neglect, Voting Behavior, and Information Aggregation," American Economic Review, American Economic Association, vol. 105(4), pages 1634-1645, April.
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    More about this item

    Keywords

    Correlation neglect; Voting; Bounded rationality; Experiment;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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