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The motivated memory of noise

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Abstract

We propose a two-stage experiment in which people receive feedback about their relative intelligence. This feedback is a noisy message reminded at every stage, so that subjects cannot forget this ego-relevant information. Instead, we exogenously vary whether the informativeness of the message is reminded in the second stage. We investigate how this treatment variation affects the informativeness reported by subjects, and their posterior beliefs about their intelligence. We show that subjects report informativeness in a self-serving way: subjects with negative messages report that these messages are significantly less informative in the absence of reminder than with it. We also show that the lack of reminder about message informativeness allows subjects to keep a better image of themselves. These results are confirmed by complementary treatments in which we decrease messages informativeness: subjects tend to inflate the informativeness of positive messages that should now be interpreted as bad news

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  • Jeanne Hagenbach & Nicolas Jacquemet & Philipp Sternal, 2024. "The motivated memory of noise," Documents de travail du Centre d'Economie de la Sorbonne 24010, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  • Handle: RePEc:mse:cesdoc:24010
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    References listed on IDEAS

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    1. Castagnetti, Alessandro & Schmacker, Renke, 2022. "Protecting the ego: Motivated information selection and updating," European Economic Review, Elsevier, vol. 142(C).
    2. Matthew S. Levendusky, 2013. "Why Do Partisan Media Polarize Viewers?," American Journal of Political Science, John Wiley & Sons, vol. 57(3), pages 611-623, July.
    3. Michael Thaler, 2024. "The Fake News Effect: Experimentally Identifying Motivated Reasoning Using Trust in News," American Economic Journal: Microeconomics, American Economic Association, vol. 16(2), pages 1-38, May.
    4. Jason Dana & Roberto Weber & Jason Kuang, 2007. "Exploiting moral wiggle room: experiments demonstrating an illusory preference for fairness," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(1), pages 67-80, October.
    5. John V. Kane & Jason Barabas, 2019. "No Harm in Checking: Using Factual Manipulation Checks to Assess Attentiveness in Experiments," American Journal of Political Science, John Wiley & Sons, vol. 63(1), pages 234-249, January.
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    More about this item

    Keywords

    Controlled experiment; Motivated beliefs; Overconfidence; Noisy feedback;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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