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Speaker:
Florian Zimmermann (briq, University of Bonn)

Information is often embedded in memorable contexts, which may cue the asymmetric recall of similar past news through associative memory. We design a theory- driven experiment, in which participants observe signals about hypothetical companies. Here, identical signal realizations are communicated with identical contexts: stories and images. Because participants asymmetrically remember those past signals that get cued by the current context, beliefs systematically overreact. This overreaction depends in predictable ways on the signal history; the correlation between signals and contexts; and the scope for forgetting and associative memory. We quantify these results by structurally estimating a model of associative recall.

Link:

https://meetingsemea11.webex.com/meetingsemea11-de/j.php?MTID=mb4de20be553ed9821da51d718872560b