“…More recently, various papers have looked at intergenerational transmission of norms concerning fertility and female labor supply decisions (Fernandez and Fogli, 2009), of values favoring trust and cooperation (Tabellini, 2008a,b andCahuc, 2010) and of preferences regarding patience and work ethic (Doepke and Zilibotti, 2006). This paper is also related to recent literature that deals with various examples of distorted collective understanding of reality, such as anti and pro-redistribution ideologies (Bénabou, 2008, Bénabou andTirole, 2006), over-optimism (andover-pessimism) about the value of existing cultural norms (Dessi, 2008), contagious exuberance in organizations (Bénabou, 2013), and no-trust-no-trade equilibria due to pessimistic beliefs about the trustworthiness of others (Guiso et al, 2008). In Bénabou (2008Bénabou ( , 2013, the individuals themselves distort own processing of information.…”