Correlation Neglect, Voting Behavior, and Information Aggregation

S-Tier
Journal: American Economic Review
Year: 2015
Volume: 105
Issue: 4
Pages: 1634-45

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper we analyze elections when voters underestimate the correlation between their information sources ("correlation neglect"). We find that this cognitive bias can improve political outcomes. We show that the extreme beliefs which result from correlation neglect induce some voters to base their vote on information rather than on political preferences. We characterize conditions on the distribution of preferences under which this induces higher vote shares for the optimal policies and better information aggregation. (JEL D72, D83)

Technical Details

RePEc Handle
repec:aea:aecrev:v:105:y:2015:i:4:p:1634-45
Journal Field
General
Author Count
2
Added to Database
2026-01-25