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Lost in Transmission

Author

Listed:
  • Thomas Graeber
  • Shakked Noy
  • Christopher Roth
  • Thomas W. Graeber

Abstract

How does word-of-mouth transmission distort economic information? We pay participants to listen to audio recordings containing economic forecasts and accurately transmit the information through voice messages. Other participants listen to an original or a transmitted recording before stating incentivized beliefs. Across various transmitter incentive schemes, a forecast’s reliability is lost in transmission at a far higher rate than the forecast’s level. Reliable and unreliable information, once filtered through transmission, impact listener beliefs similarly. Mechanism experiments show that information about reliability is not perceived as less relevant or harder to transmit, but is less likely to come to mind during transmission.

Suggested Citation

  • Thomas Graeber & Shakked Noy & Christopher Roth & Thomas W. Graeber, 2024. "Lost in Transmission," CESifo Working Paper Series 10903, CESifo.
    • Handle: RePEc:ces:ceswps:_10903
    as

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    References listed on IDEAS

    as
    1. Luca Braghieri, 2023. "Biased Decoding and the Foundations of Communication," CESifo Working Paper Series 10432, CESifo.
    2. Benjamin Enke & Thomas Graeber & Ryan Oprea & Thomas W. Graeber, 2023. "Complexity and Hyperbolic Discounting," CESifo Working Paper Series 10861, CESifo.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    information transmission; word-of-mouth; narratives; reliability;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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