Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/320334 
Year of Publication: 
2025
Citation: 
[Journal:] Quantitative Economics [ISSN:] 1759-7331 [Volume:] 16 [Issue:] 1 [Year:] 2025 [Pages:] 329-365
Publisher: 
The Econometric Society, New Haven, CT
Abstract: 
Belief-updating biases hinder the correction of inaccurate beliefs and lead to suboptimal decisions. We complement Rabin and Schrag's (1999) portable extension of the Bayesian model by including conservatism in addition to confirmatory bias. Additionally, we show how to identify these two forms of biases from choices. In an experiment, we found that the subjects exhibited confirmatory bias by misreading 19% of the signals that contradicted their priors. They were also conservative and acted as if they missed 28% of the signals.
Subjects: 
Non-Bayesian updating
conservatism
confirmatory bias
perceivedsignals
belief elicitation
JEL: 
C91
D83
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.