Beiträge zur Jahrestagung des Vereins für Socialpolitik 2019: 30 Jahre Mauerfall - Demokratie und Marktwirtschaft - Session: Economic Theory - Incomplete Information Games No. F05-V2
Why do people appear to forgo information by sorting into 'echo chambers'? We construct a highly tractable multi-sender, multi-receiver cheap talk game in which players choose with whom to communicate. We show that segregation into small, homogeneous groups can improve everybody's information and generate Paretoimprovements. Polarized preferences create a need for segregation; uncertainty about preferences and the availability of public information magnify this need. Using data from Twitter, we show several behavioral patterns that are consistent with the results of our model.
asymmetric information echo chambers polarization debate cheap talk information aggregation Twitter