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Distrust in Experts and the Origins of Disagreement

Author

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  • Alice Hsiaw

    (Brandeis University)

  • Ing-Haw Cheng

    (Brandeis University)

Abstract

Disagreement about the state of the world and expert credibility often go together in areas such as economics, climate change, and medicine. We argue this occurs because individuals make a mistake we call pre-screening when determining how much weight give an expert's signals. A pre-screener mistakes credibility as a primitive of the model and uses the signals to learn about credibility before forming posterior beliefs. Pre-screening predicts that disagreement about credibility is correlated with disagreement about the state. Furthermore: 1) Differing first impressions about credibility create persistent disagreement about the state; 2) Encountering experts in different order generates disagreement; and 3) Confirmation bias, overconfidence, and their opposites endogenously arise. These effects arise even when individuals share common priors, information, and learning errors, providing a theory of the origins of disagreement.

Suggested Citation

  • Alice Hsiaw & Ing-Haw Cheng, 2016. "Distrust in Experts and the Origins of Disagreement," Working Papers 110R3, Brandeis University, Department of Economics and International Business School, revised Mar 2018.
  • Handle: RePEc:brd:wpaper:110r3
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    4. De Moragas, Antoni-Italo, 2020. "When consensus hurts: experts' advice and electoral support," MPRA Paper 114800, University Library of Munich, Germany.
    5. 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.

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    More about this item

    Keywords

    disagreement; polarization; learning; expectations; experts;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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