The Role of Representational and Computational Complexity in Belief Formation.
We examine how representational and computational complexity interact to influence belief updating. Building on the two-stage belief updating model of Ba, Bohren, and Imas (2024), we show that when no salience cues are present, attentional and processing constraints generate underreaction to informa...
| Publicado en: | AEA Papers & Proceedings Vol. 115; pp. 631 - 637 |
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| Autores principales: | , , |
| Formato: | Artículo |
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American Economic Association
May2025
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=185592666&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 185592666 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 25740768 LNGQ jtl: AEA Papers & Proceedings issn: 25740768 maglogo: N pubinfo: dt: May2025 vid: 115 pid: 22 pub: American Economic Association artinfo: ui: 185592666 10.1257/pandp.20251107 ppf: 631 ppct: 6 formats: tig: atl: The Role of Representational and Computational Complexity in Belief Formation. aug: au: Ba, Cuimin Bohren, J. Aislinn Imas, Alex affil: Department of Economics, University of Pittsburgh Department of Economics, University of Pennslyvania Booth School of Business, University of Chicago su: Quantitative research Computational complexity Complexity (Philosophy) Cognitive psychology Human information processing Cognitive bias sug: subj: Quantitative research Computational complexity Complexity (Philosophy) Cognitive psychology Human information processing Cognitive bias ab: We examine how representational and computational complexity interact to influence belief updating. Building on the two-stage belief updating model of Ba, Bohren, and Imas (2024), we show that when no salience cues are present, attentional and processing constraints generate underreaction to information. Moreover, processing constraints generate greater cognitive imprecision in more complex environments and, hence, more underreaction. An experimental study provides evidence supporting this hypothesis. Comparing belief updating in simple and complex environments, we find underreaction in both. Moreover, increased cognitive imprecision in complex environments generates more underreaction. This highlights the interaction between complexity and cognitive constraints in belief formation. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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