2020
DOI: 10.1093/ej/ueaa128
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Social Connectivity, Media Bias, and Correlation Neglect*

Abstract: A biased newspaper aims to persuade voters to vote for the government. Voters are uncertain about the government’s competence. Each voter receives the newspaper’s report as well as independent private signals about the competence. Voters then exchange messages containing this information on social media and form posterior beliefs, neglecting correlation among messages. We show that greater social connectivity increases the probability of an efficient voting outcome if the prior favours the government; otherwis… Show more

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Cited by 11 publications
(3 citation statements)
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“…For example, misestimation of correlation patterns in mortgage defaults is thought to have played a role in triggering the global financial crisis of 2008 (Salmon, 2009). Neglecting correlations can contribute to false beliefs and ideological extremeness in social and political settings (Denter et al, 2021; Glaeser and Sunstein, 2009; Levy et al, 2022; Ortoleva and Snowberg, 2015). Likewise, correlations in the physical environment should, in principle, be leveraged to support perception (Geisler, 2008; Parise, 2016).…”
Section: Introductionmentioning
confidence: 99%
“…For example, misestimation of correlation patterns in mortgage defaults is thought to have played a role in triggering the global financial crisis of 2008 (Salmon, 2009). Neglecting correlations can contribute to false beliefs and ideological extremeness in social and political settings (Denter et al, 2021; Glaeser and Sunstein, 2009; Levy et al, 2022; Ortoleva and Snowberg, 2015). Likewise, correlations in the physical environment should, in principle, be leveraged to support perception (Geisler, 2008; Parise, 2016).…”
Section: Introductionmentioning
confidence: 99%
“…This underlies the main results of the paper, including the strictly positive margin of success, and the ability of a hopeless petition to reach the required quota of signatures. More broadly, the paper adds to the literature studying the role of online platforms in shaping political behaviour (see Pogorelskiy and Shum, 2019; Enikolopov et al, 2020; Denter et al, 2021; Denter and Ginzburg, 2022 for recent work on this topic).…”
Section: Introductionmentioning
confidence: 99%
“…Our results show that political campaigns have different effects on different voting groups. In par- 2 De Marzo et al (2003), Golub and Jackson (2012), Gagnon-Bartsch and Rabin (2015) and Denter et al (2019) study how correlation neglect affects the diffusion of information in social networks. Glaeser and Sunstein (2009) and Levy and Razin (2015a; explore the implications for group decision making in political applications.…”
mentioning
confidence: 99%