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Group Identity and Belief Formation: A Decomposition of Political Polarization

Author

Listed:
  • Kevin Bauer
  • Yan Chen
  • Florian Hett
  • Michael Kosfeld

Abstract

How does group identity affect belief formation? To address this question, we conduct a series of online experiments with a representative sample of individuals in the US. Using the setting of the 2020 US presidential election, we find evidence of intergroup preference across three distinct components of the belief formation cycle: a biased prior belief, avoidance of outgroup information sources, and a belief-updating process that places greater (less) weight on prior (new) information. We further find that an intervention reducing the salience of information sources decreases outgroup information avoidance by 50%. In a social learning context in wave 2, we find participants place 33% more weight on ingroup than outgroup guesses. Through two waves of interventions, we identify source utility as the mechanism driving group effects in belief formation. Our analyses indicate that our observed effects are driven by groupy participants who exhibit stable and consistent intergroup preferences in both allocation decisions and belief formation across all three waves. These results suggest that policymakers could reduce the salience of group and partisan identity associated with a policy to decrease outgroup information avoidance and increase policy uptake.

Suggested Citation

  • Kevin Bauer & Yan Chen & Florian Hett & Michael Kosfeld, 2023. "Group Identity and Belief Formation: A Decomposition of Political Polarization," CESifo Working Paper Series 10859, CESifo.
  • Handle: RePEc:ces:ceswps:_10859
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    References listed on IDEAS

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    1. David M. Grether, 1980. "Bayes Rule as a Descriptive Model: The Representativeness Heuristic," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(3), pages 537-557.
    2. Florian Hett & Mario Mechtel & Markus Kröll, 2020. "The Structure and Behavioral Effects of Revealed Social Identity Preferences," The Economic Journal, Royal Economic Society, vol. 130(632), pages 2569-2595.
    3. Michelitch, Kristin, 2015. "Does Electoral Competition Exacerbate Interethnic or Interpartisan Economic Discrimination? Evidence from a Field Experiment in Market Price Bargaining," American Political Science Review, Cambridge University Press, vol. 109(1), pages 43-61, February.
    4. M. Keith Chen & Ryne Rohla, 2017. "The Effect of Partisanship and Political Advertising on Close Family Ties," Papers 1711.10602, arXiv.org, revised Jun 2018.
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    Cited by:

    1. Diego Marino Fages, 2024. "Motivated Forecasts: Experimental Evidence from the Presidential Elections in Argentina," Discussion Papers 2024-08, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    2. David L Dickinson & Marie Claire Villeval, 2025. "Belief Updating about Moral Norms: Does Group Identity Matter?," Working Papers hal-05060901, HAL.
    3. Zakharov, Alexei & Chapkovski, Philipp, 2025. "The effect of war on redistribution preferences," Journal of Public Economics, Elsevier, vol. 241(C).
    4. Yves Le Yaouanq & Peter Schwardmann & Joël J. van der Weele & Yves Le Yaouanq, 2025. "Rationalizations and Political Polarization," CESifo Working Paper Series 11897, CESifo.
    5. Freundt, Jana & Herz, Holger, 2024. "From Partisanship to Preference: How Identity shapes Dependence Aversion," FSES Working Papers 536, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.

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    More about this item

    Keywords

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    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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