2448  The Self Perpetuation of Biased Beliefs

Date: Fri, 14 May 2004 13:36:14 -0500
From: Stephen Brown <Stephen.P.Brown@DAL.FRB.ORG>
Subject: The Self Perpetuation of Biased Beliefs

"The Self Perpetuation of Biased Beliefs," an article in the April 2004
issue of The Economic Journal by Wing Suen finds that there is a high
probability that individuals will become more biased and remain that way
if they start out with biased beliefs and information is costly. Such
biases can lead to sharply polarized opinions. These conclusions arise
because the more biased an individual's view is, the stronger will be the
contrary evidence necessary to change the view. Opinions from people
known to hold contrary perspectives will be given little weight, and
opinions from like-minded advisors will reinforce previously held views.
Only when a biased person receives contrary advice from advisors who are
thought to be sufficiently like-minded will contrary opinions be given
much weight.

--Steve