Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/203250 
Year of Publication: 
2019
Series/Report no.: 
CFS Working Paper Series No. 626
Publisher: 
Goethe University Frankfurt, Center for Financial Studies (CFS), Frankfurt a. M.
Abstract: 
We build a search-and-matching algorithm of network dynamics with decision-making under incomplete information, seeking to understand the determinants of the observed gradual downgrading of expert opinion on complicated issues and the decreasing trust in science. Even without fake news, combining the internet's ease of forming networks with (a) individual biases, such as confirmation bias or assimilation bias, and (b) people's tendency to align their actions with those of peers, produces populist and polarization network dynamics. Homophily leads to actions with more weight on biases and less weight on expert opinion, and such actions lead to more homophily.
Subjects: 
network dynamics
internet
higher-order beliefs
learning
expertopinions
biased assimilation
confirmation bias
JEL: 
D85
D83
D82
D72
C78
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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