The Dynamics of Motivated Beliefs

Florian Zimmermann

American Economic Review, 2020, vol. 110, issue 2, 337-61

Abstract: A key question in the literature on motivated reasoning and self-deception is how motivated beliefs are sustained in the presence of feedback. In this paper, we explore dynamic motivated belief patterns after feedback. We establish that positive feedback has a persistent effect on beliefs. Negative feedback, instead, influences beliefs in the short run, but this effect fades over time. We investigate the mechanisms of this dynamic pattern, and provide evidence for an asymmetry in the recall of feedback. Finally, we establish that, in line with theoretical accounts, incentives for belief accuracy mitigate the role of motivated reasoning.

JEL-codes: C91 D83 D91 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (109)

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Working Paper: The Dynamics of Motivated Beliefs (2019)
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DOI: 10.1257/aer.20180728

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