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I Think What You Think: Trade Fairs and the Exchange of Firms' Beliefs

Author

Listed:
  • Anja Sebbesen

    (WIFO)

  • Birgit Meyer

    (WIFO)

Abstract

Does interaction between firms lead to a streamlining of expectations? We test for the existence of a so-far ignored channel of expectation formation and diffusion by matching a regular Austrian business survey on firm expectations with the schedule and confirmed exhibitors at trade fairs. We find that in the month after a firm has exhibited at a trade fair, its production expectations react stronger to consensus expectations than in other months. We thus provide first micro-level evidence suggesting that firms' beliefs are shaped by information from other firms with whom they meet and potentially trade.

Suggested Citation

  • Anja Sebbesen & Birgit Meyer, 2025. "I Think What You Think: Trade Fairs and the Exchange of Firms' Beliefs," WIFO Working Papers 704, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2025:i:704
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