IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_10859.html
   My bibliography  Save this paper

Group Identity and Belief Formation: A Decomposition of Political Polarization

Author

Listed:
  • Kevin Bauer
  • Yan Chen
  • Florian Hett
  • Michael Kosfeld

Abstract

How does group identity affect belief formation? To address this question, we conduct a series of online experiments with a representative sample of individuals in the US. Using the setting of the 2020 US presidential election, we find evidence of intergroup preference across three distinct components of the belief formation cycle: a biased prior belief, avoidance of outgroup information sources, and a belief-updating process that places greater (less) weight on prior (new) information. We further find that an intervention reducing the salience of information sources decreases outgroup information avoidance by 50%. In a social learning context in wave 2, we find participants place 33% more weight on ingroup than outgroup guesses. Through two waves of interventions, we identify source utility as the mechanism driving group effects in belief formation. Our analyses indicate that our observed effects are driven by groupy participants who exhibit stable and consistent intergroup preferences in both allocation decisions and belief formation across all three waves. These results suggest that policymakers could reduce the salience of group and partisan identity associated with a policy to decrease outgroup information avoidance and increase policy uptake.

Suggested Citation

  • Kevin Bauer & Yan Chen & Florian Hett & Michael Kosfeld, 2023. "Group Identity and Belief Formation: A Decomposition of Political Polarization," CESifo Working Paper Series 10859, CESifo.
  • Handle: RePEc:ces:ceswps:_10859
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10859.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Florian Hett & Mario Mechtel & Markus Kröll, 2020. "The Structure and Behavioral Effects of Revealed Social Identity Preferences," The Economic Journal, Royal Economic Society, vol. 130(632), pages 2569-2595.
    2. Michelitch, Kristin, 2015. "Does Electoral Competition Exacerbate Interethnic or Interpartisan Economic Discrimination? Evidence from a Field Experiment in Market Price Bargaining," American Political Science Review, Cambridge University Press, vol. 109(1), pages 43-61, February.
    3. M. Keith Chen & Ryne Rohla, 2017. "The Effect of Partisanship and Political Advertising on Close Family Ties," Papers 1711.10602, arXiv.org, revised Jun 2018.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicolás Ajzenman & Bruno Ferman & Pedro C. Sant’Anna, 2023. "Rooting for the Same Team: On the Interplay between Political and Social Identities in the Formation of Social Ties," Working Papers 231, Red Nacional de Investigadores en Economía (RedNIE).
    2. Fortuna Casoria & Ernesto Reuben & Christina Rott, 2022. "The Effect of Group Identity on Hiring Decisions with Incomplete Information," Management Science, INFORMS, vol. 68(8), pages 6336-6345, August.
    3. M. Keith Chen & Judith A. Chevalier & Elisa F. Long, 2021. "Nursing home staff networks and COVID-19," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 118(1), pages 2015455118-, January.
    4. Bauer, Kevin & Chen, Yan & Hett, Florian & Kosfeld, Michael, 2023. "Group identity and belief formation: A decomposition of political polarization," SAFE Working Paper Series 409, Leibniz Institute for Financial Research SAFE.
    5. Bjorvatn, Kjetil & Galle, Simon & Berge, Lars Ivar Oppedal & Miguel, Edward & Posner, Daniel N & Tungodden, Bertil & Zhang, Kelly, 2021. "Elections and selfishness," Department of Economics, Working Paper Series qt6c55s38q, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    6. Eugen Dimant, 2020. "Hate Trumps Love: The Impact of Political Polarization on Social Preferences," ECONtribute Discussion Papers Series 029, University of Bonn and University of Cologne, Germany.
    7. Chapkovski, Philipp, 2022. "Information avoidance in a polarized society," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 101(C).
    8. Lane, Tom & Miller, Luis & Rodriguez, Isabel, 2024. "The normative permissiveness of political partyism," European Economic Review, Elsevier, vol. 162(C).
    9. Abramson, Boaz & Shayo, Moses, 2022. "International integration and social identity," Journal of International Economics, Elsevier, vol. 137(C).
    10. Milena Almagro & Joshua Coven & Arpit Gupta & Angelo Orane-Hutchinson, 2020. "Racial Disparities in Frontline Workers and Housing Crowding during COVID-19: Evidence from Geolocation Data," Opportunity and Inclusive Growth Institute Working Papers 37, Federal Reserve Bank of Minneapolis.
    11. Painter, Marcus & Qiu, Tian, 2021. "Political beliefs affect compliance with government mandates," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 688-701.
    12. Jeffrey Conroy-Krutz, 2016. "Competing cleavages in sub-Saharan Africa? How economic distance affects ethnic bloc politics," WIDER Working Paper Series 104, World Institute for Development Economic Research (UNU-WIDER).
    13. Gupta, Arpit & Van Nieuwerburgh, Stijn & Kontokosta, Constantine, 2022. "Take the Q train: Value capture of public infrastructure projects," Journal of Urban Economics, Elsevier, vol. 129(C).
    14. Wenbo Zou & Xue Xu, 2023. "Ingroup bias in a social learning experiment," Experimental Economics, Springer;Economic Science Association, vol. 26(1), pages 27-54, March.
    15. Pérez-Martínez, H. & Bauzá Mingueza, F. & Soriano-Paños, D. & Gómez-Gardeñes, J. & Floría, L.M., 2023. "Polarized opinion states in static networks driven by limited information horizons," Chaos, Solitons & Fractals, Elsevier, vol. 175(P1).
    16. Paul Blanchard & Douglas Gllin & Martina Kirchberger, 2020. "Perpetual Motion: Human Mobility and Spatial Frictions in Three African Countries," CSAE Working Paper Series 2020-18, Centre for the Study of African Economies, University of Oxford.
    17. J Anthony Cookson & Joseph E Engelberg & William Mullins & Hui Chen, 0. "Does Partisanship Shape Investor Beliefs? Evidence from the COVID-19 Pandemic," The Review of Asset Pricing Studies, Society for Financial Studies, vol. 10(4), pages 863-893.
    18. Grossman, Shelby & Honig, Dan, 2017. "Evidence from Lagos on Discrimination across Ethnic and Class Identities in Informal Trade," World Development, Elsevier, vol. 96(C), pages 520-528.
    19. Susan Athey & Billy A. Ferguson & Matthew Gentzkow & Tobias Schmidt, 2020. "Experienced Segregation," NBER Working Papers 27572, National Bureau of Economic Research, Inc.
    20. Theresa Kuchler & Johannes Stroebel, 2022. "Social Interactions, Resilience, and Access to Economic Opportunity: A Research Agenda for the Field of Computational Social Science," CESifo Working Paper Series 9606, CESifo.

    More about this item

    Keywords

    group identity; information demand; information processing; political polarization;
    All these keywords.

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_10859. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.