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Stories, Statistics, and Memory

Author

Listed:
  • Thomas Graeber

    (Harvard Business School)

  • Christopher Roth

    (University of Cologne and ECONtribute)

  • Florian Zimmermann

    (University of Bonn and briq)

Abstract

For most decisions, we encounter relevant information over the course of days, months or years. We consume such information in various forms, including quan-titative data about collections of observations – statistics – and qualitative content about individual instances – stories. This paper proposes that the information type –story versus statistic – shapes selective memory. In controlled experiments, we doc-ument a pronounced story-statistic gap in memory: the average impact of stories on beliefs fades by 33% over the course of a day, but by 73% for statistics. Guided by a model of selective memory, we disentangle different mechanisms underlying the story-statistic gap. The similarity between relevant information in memory and the prompt drives the gap. Irrelevant information that is similar to the prompt, on the other hand, impedes successful recall.

Suggested Citation

  • Thomas Graeber & Christopher Roth & Florian Zimmermann, 2022. "Stories, Statistics, and Memory," ECONtribute Discussion Papers Series 208, University of Bonn and University of Cologne, Germany.
    • Handle: RePEc:ajk:ajkdps:208
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    File URL: https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_208_2022.pdf
    File Function: Second version, 2023
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    References listed on IDEAS

    as
    1. Peter Andrebriq & Carlo Pizzinelli & Christopher Roth & Johannes Wohlfart, 2022. "Subjective Models of the Macroeconomy: Evidence From Experts and Representative Samples [Rationally Confused: On the Aggregate Implications of Information Provision Policies]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(6), pages 2958-2991.
    2. Benjamin Enke, 2020. "What You See Is All There Is," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(3), pages 1363-1398.
    3. Benjamin Enke & Frederik Schwerter & Florian Zimmermann, 2019. "Associative Memory and Belief Formation," CESifo Working Paper Series 7916, CESifo.
    4. Thiemo Fetzer & Lukas Hensel & Johannes Hermle & Christopher Roth, 2021. "Coronavirus Perceptions and Economic Anxiety," The Review of Economics and Statistics, MIT Press, vol. 103(5), pages 968–978-9, December.
    5. Kfir Eliaz & Ran Spiegler, 2020. "A Model of Competing Narratives," American Economic Review, American Economic Association, vol. 110(12), pages 3786-3816, December.
    6. Peter Andre & Ingar Haaland & Christopher Roth & Johannes Wohlfart, 2021. "Narratives about the Macroeconomy," CEBI working paper series 21-18, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    7. Nicholas Epley & Thomas Gilovich, 2016. "The Mechanics of Motivated Reasoning," Journal of Economic Perspectives, American Economic Association, vol. 30(3), pages 133-140, Summer.
    8. Roland Bénabou & Jean Tirole, 2005. "Self-Confidence and Personal Motivation," International Economic Association Series, in: Bina Agarwal & Alessandro Vercelli (ed.), Psychology, Rationality and Economic Behaviour, chapter 2, pages 19-57, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Andrea Amelio & Florian Zimmermann, 2023. "Motivated Memory in Economics—A Review," Games, MDPI, vol. 14(1), pages 1-15, January.
    2. Christopher Roth & Peter Schwardmann & Egon Tripodi, 2024. "Misperceived Effectiveness and the Demand for Psychotherapy," ECONtribute Discussion Papers Series 279, University of Bonn and University of Cologne, Germany.
    3. George Loewenstein & Zachary Wojtowicz, 2023. "The Economics of Attention," CESifo Working Paper Series 10712, CESifo.

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    More about this item

    Keywords

    Memory; Belief Formation; Stories; Narratives; Statistical Information.;
    All these keywords.

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