2019
DOI: 10.1111/iere.12406
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Dimensionality and Disagreement: Asymptotic Belief Divergence in Response to Common Information

Abstract: We provide a model of boundedly rational, multidimensional learning and characterize when beliefs will converge to the truth. Agents maintain beliefs as marginal probabilities instead of joint probabilities, and agents' information is of lower dimension than the model. As a result, for some observations, agents may face an identification problem affecting the role of data in inference. Beliefs converge to the truth when these observations are rare, but beliefs diverge when observations presenting an identifica… Show more

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Cited by 12 publications
(9 citation statements)
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“…In this paper, I present a model of a more optimistic alternative: affective polarization driven by misunderstanding. I model inter-personal feelings by assuming they are based on cognitive beliefs, consistent with recent work from psychology 1 See Williams (2017) and Loh and Phelan (2017) for recent models and discussion of the disagreement literature, which I also discuss briefly in Section 2. See Babcock and Loewenstein (1997) for discussion of work on bargaining impasses.…”
Section: Introductionmentioning
confidence: 88%
See 1 more Smart Citation
“…In this paper, I present a model of a more optimistic alternative: affective polarization driven by misunderstanding. I model inter-personal feelings by assuming they are based on cognitive beliefs, consistent with recent work from psychology 1 See Williams (2017) and Loh and Phelan (2017) for recent models and discussion of the disagreement literature, which I also discuss briefly in Section 2. See Babcock and Loewenstein (1997) for discussion of work on bargaining impasses.…”
Section: Introductionmentioning
confidence: 88%
“…An important similarity between our models is that different beliefs about one dimension (in my model, tastes or level of strategic thinking) is the cause of increasing disagreement on the other dimension (character). Papers on related identification problems (data that is lower dimensional than the true model) leading to persistent or growing disagreement include Acemoglu, Chernozhukov, and Yildiz (2016), Piketty (1995), Benoît and Dubra (2017), and Loh and Phelan (2017). These papers are quite distinct from mine in two ways: 1) they do not focus on cognitive bias as the root cause of disagreement;…”
Section: Additional Related Literaturementioning
confidence: 99%
“…An important similarity between our models is that different beliefs about one dimension (in my model, tastes or level of strategic thinking) is the cause of increasing disagreement on the other dimension (character). Papers on related identification problems (data that are lower dimensional than the true model) leading to persistent or growing disagreement include Acemoglu et al (2016), Piketty (1995), Benoît and Dubra (2019), and Loh and Phelan (2019). These papers are quite distinct from mine in two ways: (1) They do not focus on cognitive bias as the root cause of disagreement; (2) they do not address interpersonal feelings, or growing dislike in particular.…”
Section: Additional Related Literaturementioning
confidence: 99%
“…Papers on related identification problems (data that are lower dimensional than the true model) leading to persistent or growing disagreement include Acemoglu et al. (), Piketty (), Benoît and Dubra (), and Loh and Phelan (). These papers are quite distinct from mine in two ways: (1) They do not focus on cognitive bias as the root cause of disagreement; (2) they do not address interpersonal feelings, or growing dislike in particular.…”
Section: Additional Related Literaturementioning
confidence: 99%
“…() show that two individuals can persistently polarize in a model in which agents are not fully rational. Loh and Phelan () provide conditions for when long run polarization can occur, and when it cannot, when individuals do not store the full distribution over the multidimensional state space but only the marginals over each dimension. All four of these papers can be interpreted as showing population polarization as well as pairwise polarization in nonstandard settings.…”
Section: Related Literaturementioning
confidence: 99%