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Good News Is Not a Sufficient Condition for Motivated Reasoning

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  • Michael Thaler

Abstract

People often receive good news that makes them feel better about the world around them, or bad news that makes them feel worse about it. This paper studies how the valence of news affects belief updating, absent functional and ego-relevant factors. Using experiments with over 1,500 participants and 5,600 observations, I test whether people engage in motivated reasoning to overly trust good news versus bad news on valence-relevant issues like cancer survival rates, others’ happiness, and infant mortality. The estimate for motivated reasoning towards good news is a precisely-estimated null. Modest effects, of one-third the size of motivated reasoning in politics and performance, can be ruled out. Complementary survey evidence shows that most people expect good news to increase happiness, but to not systematically lead to motivated reasoning. These results suggest that belief-based utility is not sufficient in leading people to distort belief updating in order to favor those beliefs.

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  • Michael Thaler, 2024. "Good News Is Not a Sufficient Condition for Motivated Reasoning," CESifo Working Paper Series 10915, CESifo.
    • Handle: RePEc:ces:ceswps:_10915
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    Cited by:

    1. Michael Thaler, 2021. "The Supply of Motivated Beliefs," Papers 2111.06062, arXiv.org, revised Sep 2023.
    2. Thaler, Michael, 2021. "Gender differences in motivated reasoning," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 501-518.
    3. Faia, Ester & Fuster, Andreas & Pezone, Vincenzo & Zafar, Basit, 2021. "Biases in information selection and processing: Survey evidence from the pandemic," SAFE Working Paper Series 307, Leibniz Institute for Financial Research SAFE.

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    More about this item

    Keywords

    motivated reasoning; belief-based utility; experimental economics;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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