Events at CERGE-EI

Prof. Christopher Roth

University of Cologne, Germany

Join at Zoom: https://cuni-cz.zoom.us/j/97220648234?pwd=T1hucmtpdCtXTHVOa2ppbGsxQTNkUT09
                       Meeting ID: 972 2064 8234
                       Passcode: 913153

Abstract: For most economic decisions, people process a myriad of relevant information over time. Such information come in various forms, including abstract summaries of multiple data points - statistics - and contextualized anecdotes about single instances - stories. We propose that people may not always remember the full wealth of their accumulated information, and that the type of information - story versus statistic - is a central determinant of selective memory. Using controlled experiments, we document a statistics - story gap in memory: while statistics have a stronger effect on immediate beliefs, stories dominate beliefs after a delay. We causally show that this flipping pattern is driven by contextual associations: removing context from stories or adding context to statistics closes the gap. Guided by a memory model of similarity and interference, we experimentally disentangle and compare the explanatory power of different features of interference.