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Bibliographic Details
Main Author: Aydogan, Ilke
Format: Recurso digital
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Published: Zenodo 2025
Online Access:https://doi.org/10.3982/QE2094
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Table of Contents:
  • <p>Belief-updating biases hinder the correction of inaccurate beliefs and lead to suboptimal decisions. We complement Rabin and Schrag’s (1999) portable extension of theBayesianmodelbyincludingconservatisminadditiontoconfirmatorybias. Additionally,weshowhowtoidentifythesetwoformsofbiasesfromchoices.Inan experiment, we found that the subjects exhibited confirmatory bias by misreading 19% of the signals that contradicted their priors. They were also conservative andacted as if they missed 28%ofthesignals.</p>