In this review, we survey the economics literature on echo chambers. We identify echo
chambers as arising from a combination of two phenomena:(a) the choice of individuals to …

This review presents an approach to modeling decision making under misspecified
subjective models. The approach is based on the idea that decision makers impose …

We formalize the argument that political disagreements can be traced to a “clash of
narratives.” Drawing on the “Bayesian Networks” literature, we represent a narrative by a …

We provide evidence on the stories that people tell to explain a historically notable rise in
inflation using samples of experts, US households, and managers. We document substantial …

In the philosophy of science why-questions are a way to address the foundations of scientific
explanation. For Bas van Fraassen (1980), a theory of explanation is essentially a theory of …

We study how one person may shape the way another person interprets objective
information. They do this by proposing a sense-making explanation (or narrative). Using a …

We consider an agent who posits a set of probabilistic models for the payoff-relevant
outcomes. The agent has a prior over this set but fears the actual model is omitted and …

This paper studies the role of narratives for macroeconomic fluctuations. Microfounding
narratives as directed acyclic graphs, we show how exposure to different narratives can …

This paper studies the forms of model misspecification that are more likely to persist when
an agent compares her subjective model with competing models. The agent learns about an …

Individuals use models to guide decisions, but many models are wrong. This paper studies
which misspecified models are likely to persist when individuals also entertain alternative …