Saved in:
Bibliographic Details
Main Author: Gonzalez-Fernandez, Pedro
Format: Preprint
Published: 2024
Subjects:
Online Access:https://arxiv.org/abs/2404.09297
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866917362590023680
author Gonzalez-Fernandez, Pedro
author_facet Gonzalez-Fernandez, Pedro
contents This paper proposes a unified theoretical model to identify and test a comprehensive set of probabilistic updating biases within a single framework. The model achieves separate identification by focusing on the updating of belief distributions, rather than point beliefs alone. Estimating the model in a laboratory experiment reveals significant individual heterogeneity: all tested biases are present and exhibit systematic co-occurrence patterns across individuals, with motivated-belief biases (optimism and pessimism) and sequence-related biases (gambler's and hot-hand fallacy) emerging as key drivers of biased inference. At the population level most biases average out, but base-rate neglect remains a persistent influence. This study contributes to the belief-updating literature by providing a methodological toolkit for researchers examining links between conflicting biases and connections between updating biases and other behavioral phenomena.
format Preprint
id arxiv_https___arxiv_org_abs_2404_09297
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Belief Bias Identification
Gonzalez-Fernandez, Pedro
General Economics
Economics
This paper proposes a unified theoretical model to identify and test a comprehensive set of probabilistic updating biases within a single framework. The model achieves separate identification by focusing on the updating of belief distributions, rather than point beliefs alone. Estimating the model in a laboratory experiment reveals significant individual heterogeneity: all tested biases are present and exhibit systematic co-occurrence patterns across individuals, with motivated-belief biases (optimism and pessimism) and sequence-related biases (gambler's and hot-hand fallacy) emerging as key drivers of biased inference. At the population level most biases average out, but base-rate neglect remains a persistent influence. This study contributes to the belief-updating literature by providing a methodological toolkit for researchers examining links between conflicting biases and connections between updating biases and other behavioral phenomena.
title Belief Bias Identification
topic General Economics
Economics
url https://arxiv.org/abs/2404.09297