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Stories, statistics, and memory

Author

Listed:
  • Thomas Graeber

    (University of Harvard)

  • Christopher Roth

    (University of Cologne)

  • Florian Zimmermann

    (University of Bonn)

Abstract

Widespread misperceptions shape attitudes on key societal topics, such as climate change and the recent pandemic. These belief distortions are puzzling in contexts where accurate statistical information is broadly available and attended to. This column argues that the nature of human memory may be key for understanding the persistence of misperceptions in practice. It documents that anecdotal information in the form of stories comes to mind more easily than statistical information, generating the potential for systematic belief biases.

Suggested Citation

  • Thomas Graeber & Christopher Roth & Florian Zimmermann, 2023. "Stories, statistics, and memory," ECONtribute Policy Brief Series 045, University of Bonn and University of Cologne, Germany.
    • Handle: RePEc:ajk:ajkpbs:045
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    File URL: https://www.econtribute.de/RePEc/ajk/ajkpbs/ECONtribute_PB_045_2023.pdf
    File Function: First 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," ECONtribute Discussion Papers Series 127, University of Bonn and University of Cologne, Germany.
    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," Rationality and Competition Discussion Paper Series 500, CRC TRR 190 Rationality and Competition.
    3. George Loewenstein & Zachary Wojtowicz, 2023. "The Economics of Attention," CESifo Working Paper Series 10712, CESifo.

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