Economists examine how people infer, revise beliefs in face of new information
When people hear something new about a topic, they should update their beliefs to reflect the new information. But many people either underreact or overreact, with their responses varying based on different factors, including the environment. In "The Inference-Forecast Gap in Belief Updating," resea...
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When people hear something new about a topic, they should update their beliefs to reflect the new information. But many people either underreact or overreact, with their responses varying based on different factors, including the environment. In "The Inference-Forecast Gap in Belief Updating," researchers compared how people make inferences and revise their beliefs in light of the same information.
Originally published at Phys.org
