Information and Influence

Behavioral Approaches to Political Persuasion

Jan Zilinsky

CONTENTS

  • Lecture 1: Foundations - Economic vs. Behavioral Models
  • Lecture 2: The Rational Ideal - Information, Objective Probabilities, and Subjective Beliefs
  • Lecture 3: Heuristics and Cognitive Biases
  • Lecture 4: Perspectives on persuasion
  • Lecture 5: Applications in Politics - Salience & Stereotypes
  • Lecture 6: Synthesis and Applications

Lecture 1: Foundations - Economic vs. Behavioral Models

Our objective

Understand the central tension between standard economic models and behavioral science

  • Principles of economic reasoning (Optimization, Equilibrium) and why this makes persuasion seem hard

  • Introduce Behavioral Economics as an approach that accounts for human limitations (limited attention, willpower, etc.)

Social sciences

Shared interest in decision-making of humans

  • There are various theories of human behavior
    • We can test them (more on that later)
    • People as “political animals”.
    • Economic theory assumes people make (generally thoughtful) choices autonomously.
    • Sociology: people’s actions are shaped by group identities
    • Psychology (e.g. cognitive limitations; moral intuitions & other phenomena)
  • Utility can be broadly defined. However, most models assume that agents are not influenced by their environment (e.g. a person will not pay more just because she is observed by her peers).

Behavioral economics / behavioral science

  • People try their best to achieve their goals
  • Due to various their own limitations AND due to systemic frictions, people may not choose well.
    • Limited attention.
    • Lacking willpower.
    • The choice set is too confusing.
    • Spontaneous choices & failure to consider future consequences.
    • Misperception of probabilities.

Key component: they would have been better off with another alternative, as judged by themselves.

Political science

A systematic study of political activities and institutions.

  • Candidates and voters.
  • Many other agents (who may not express their political goals most of the time but could be mobilized during campaigns).
  • Groups/coalitions organizing to achieve their goals.
  • Behavior can be strategic BUT:
    • We don’t assume all agents are (equally) sophisticated.
    • Agents may be motivated by material pay-offs.
    • And also by non-material (e.g. status) considerations.

Principles of economic reasoning

Two core concepts

1. Optimization

Choosing the best option (or trying to do so)

2. Equilibrium

Everybody behaves this way

  • And your counterparts know that this is the process you follow
  • So they behave accordingly

Implication: Persuasion should be very hard!

  • The recipient is skeptical of most claims.

  • Senders expect that their advertizing / lobbying efforts will matched by opponents.

  • In equilibrium, no benefit from deviation from (optimally chosen) actions.

But is information acquisition costless? (Frictionless information flow is assumed in many models…)



“the standard economic view that persuasion is conveyance of information seems to run into a rather basic problem that advertising is typically emotional, associative, and misleading — yet nonetheless effective” (Shleifer 2012)

An Extremely Fast Review of Economic Principles

The standard framework works well in markets (ideally: commodities with a clear features)

  • Preferences.

    • Utility increases with consumption
  • Some function translates “goods” into “utility”

  • Consumption decisions are subject to constraints

  • People “maximize utility”

\[ max ~ u(c) ~~~ s.t.~ p \times x \leq B \]

  • Basic models: the “conversion rate” from consumption to enjoyment is the same for all people. \(u_i(c) = u_j(c)\).

Rational updating

  • Claim or report: e.g. “Inflation rate exceeded 10%”. (R)
  • Agents hold an initial view (prior), Pr(High Inflation) = Pr(H).
  • Given the report, opinions are updated as follows:

\[ Pr(H|R) = \frac{Pr(R|H)Pr(H)}{Pr(R)} \]

where Pr(R) = Pr(R|H)Pr(H) + Pr(R|Low)Pr(Low)

Pr(R|H) is the essential element.

Is Pr(R|H) accurately perceived?

  • You might have heard of confirmation bias.
  • Wishful thinking…
  • Pr(R|H) could be deliberately ignored if it contradicts cherished beliefs.


More to come about cognitive distortions soon.

Economic Principles

  • A large number of “agents” (people)
  • Their individual decisions do not affect important systemic parameters
  • So prices are “fixed” in the short term
  • Markets reach an equilibrium
    • Producers compete
    • Consumers buy what makes them happy

What is economics about?

  • Traditionally economics understood as being about satisfying material needs
  • No longer accurate today
  • Achieving goals (broadly defined) efficiently when facing scarcity (or strategic interactions)
  • Analysis of constraints, preferences and beliefs to understand incentives

Some problems with the optimization theory

  • How long are your time horizons? (Want the dessert now.)
  • Expectations about outcomes are unclear
    • Is working out really good for you? Is running as good as yoga?
    • Will I be more productive if I sleep more?
    • Did I choose the field of study that is “the best” for me?

A more natural way to think about the framework

  • Some people object because “utility maximization” seems unnatural or unrealistic.

  • But consider unpleasant experiences that you wish to minimize

    • Would you pick a longer line in a grocery store?
    • Would you study more than is necessary to get the desired grade?
    • Would you go to the gym more than necessary to stay healthy?
  • Each minute you spend waiting “hurts”.

  • Does each additional minute hurt equally?

\[ u(wait) = -minutes \]

\[ \text{or} ~~ u(wait) = -minutes^2 \]

A basic theory makes these predictions

  1. Lines will be equally long
  2. So in equilibrium, you don’t even need to look. You can assume no line is shorter.
  3. If one line looks significantly shorter, there must be a good reason.

What people are minimizing is not some spatial length/position but minutes spent waiting in the line.

Utility is simply the payoff function

U = value of groceries - time costs - monetary costs

  • You could still say the model “simplifies too much”
  • But that’s the point!
  • If needed you can enrich the model (but sacrifice parsimony)

Central Concepts

  • Scarcity and Tradeoffs
  • Budget constraints
  • Opportunity cost (the best alternative use of a resource)

Economic Principles

  1. Optimization: people decide what to do by consciously or unconsciously weighing the pros and cons of the different available options.

  2. Equilibrium: systems tend toward equilibrium, a state in which no agent would benefit by changing his or her own behavior.

Economic Models

  • Simple models will assume that people:
    • Know all their options
    • Know all prices
    • Are perfectly self-aware of their own desires
    • Consider all possibilities
    • Choose optimally
  • Slightly more complex situations
    • Agents are not sure about outcomes
    • Might buy a ticket, even if the probability of enjoying is only 50%

How to deal with uncertainty?

Expectation formation is crucial

Probabilities MAY be objective

  • “50% of people like me enjoyed the show”
  • Based on the data, the best guess is that my chance of a positive payoff is 50% as well.

Subjective probabilities

  • When data is imperfect (almost always)
  • How “should” the decision-maker form his or her beliefs?
  • How will the decision-maker form his or her beliefs?

Subjective probabilities

  • We wish to understand processes to manipulate these objects.
  • Major problem: an important component may be unobserved (and non-repeatable).

Example: What is Pr(Social Democrats will increase the minimum wage)?

  • To answer, you may need to form beliefs about Pr(SD are committed to raising MW).
  • Then Pr(Raise) = Pr(Raise|Comm.)Pr(Comm.) + Pr(Raise|Weak comm.)Pr(Weak comm.)

Economic analysis

  • Discover a decision-maker’s objectives
    • How can an objective be achieved with as few resources as possible?
    • (A minimization problem)
    • “Efficient” use of time, money, and other scare resources
  • Deviation from optimization is not expected (viewed as non-rational)

Choosing how much to study

Assume that \(U(h) = V - h\).

h grade Value
0 hours F -5
.
10 hour B 0
20 hours A 30

U(0) = - 5

U(10) = -10

U(20) = 30 - 20 = 10

Choosing how much to study when the outcome is uncertain

Continue to assume that \(U(h) = V - h\).

h grade Value
0 hours F -5
.
10 hour B 0
20 hours Pr(A)=50% ?
20 hours Pr(B)=50%

Then U(0) = - 5; U(10) = -10; and \(U(20) = 0.5 \times 30 + 0.5 \times 0 - 20 = - 5\).

Complications

  • Maybe studying (for some classes) “doesn’t hurt”.
  • Or some people like to study and others don’t - is it fair to assume everyone has the same preferences?
  • Suppose it’s really true that Pr(A) = Pr(B) = 50%. Would it be useful to convince yourself that Pr(A) is higher? (Over-optimism can be motivating…)
  • We implicitly assumed that all components (incl. V) are accurately perceived.

Terminology

  • Converting hours into grades: that’s the technology.
  • How quickly can “hours of study” be turned into good grades? That’s productivity.
  • A gain from each hour: marginal product.
  • When conversion is faster, it means that studying is “cheaper”
    • For each hour you expend, you get more.
  • Optimization just means setting the marginal benefit equal to marginal cost.

Expected utility formula

You can think of any risky choice as making a gamble (used in a value-neutral way here).

In a gamble in which there is a \(p_1\)% chance of winning $X, and a \(p_2\)% chance of winning $Y, the expected take-home payout, or the expected value is:

\[ EV=p_1X + p_2Y \]

Generalizing:

\[ \text{EU(gamble)} = \sum_{i=1}^{N} u(x_i)p_i \]

Understanding decisions of (political/any) actors

  • Allow for departures from the expected utility theory
  • But maintain the assumption that people pursue their goals

. . .

Lecture 2: The Rational Ideal - Information, Objective Probabilities, and Subjective Beliefs

Choice overload

Setting the stage

  • Relatively little work on what the Homer vs. FRP (fully rational person) spectrum means for political competition
    • Voters are inattentive and use shortcuts because the stakes are low (the impact of one vote is microscopic).
    • BUT there are many forms of political participation beyond voting.

Existing research

  • Behavioral economics: a domain for various decisions (often personal/financial)
    • Energy consumption and other decisions with environmental externalities
    • Applied and scholarly work about anticipating human biases when designing public policy.
  • Cousin fields
    • Marketing: Selling commercial products
    • Psychology: “persuading the self”; staying motivated to achieve your personal objectives

We will view decision science as comprised of these 3 objects


1. Preferences

2. Beliefs

3. Constraints

Changing behavior means that you need to target one of them

Persuasion Models in a Political Context

When there are two prospects, X and Y:

\[ EV=p_1X + p_2Y \]

Conceptualizing persuasive technologies those messages that will change perceptions about any component of the payoff.

  • Behavioral economics: similar to other fields, but includes psychological factors

  • A more aggressive defintion (from a newspaper):the study of “how people actually make decisions rather than how the classic economic models say they make them.”

  • “Modern economics takes a relatively simple view of human behavior as governed by unlimited cognitive ability applied to a small number of concrete goals and unencumbered by emotion.” (Brunnermeier and Parker, 2005)

  • The traditional model assumes “that each individual has stable and coherent preferences and that she rationally maximizes those preferences given a set of options and beliefs” (Rabin)

Behavioral Political Economy

  • Study political competition

  • Actors have different levels of sophistication

  • But they all seek to achieve well-defined objectives

How we depart from the standard model

  • Beliefs are not necessarily correct
  • Drop the assumption that people will act in the same way regardless of how choices are presented
  • Do not assume that people care about gains and losses equally

What are correct predicitions?

  • Claim or report (R)
  • Existing view in favor of a hypothesis: Pr(H).
  • Given the report, opinions are updated as follows:

\[ Pr(H|R) = \frac{Pr(R|H)Pr(H)}{Pr(R|H)Pr(H) + Pr(R|\neg H)Pr(\neg H).} \]

Interpreting test results

Example: testing whether a person has contracted a disease

  • A disease has these features:
  • If you do not suffer from it, the prob. of testing positive is 5%.
  • If you have the disease, the probability of (wrongly) getting negative results is 10%
  • What can you conclude on the basis of the testing positive?

. . .

90% or 95%

. . .

  • This was a trick, sorry…
  • There is not enough information to tell!

Interpreting test results

What we know

  • P(+|ND) = 5%
  • P(-|D) = 10%
  • These are different ways of the test getting it wrong.
  • We can calculate complements:
  • P(-|ND) = 1 - P(+|ND) = 95%
  • P(+|D) = 1 - P(-|D) = 90%

That’s useful, but \(P(+|D)\) is not what we want.

Instead, we want \(P(D|+)\).

Jargon

  • P(+|ND) = False positive rate
  • P(-|D) = False negative rate
  • P(-|ND) = Specificity
  • P(+|D) = Sensitivity

Some people will stress “good sensitivity”. That’s not enough…

Interpreting test results

\[ P(D|+) = \frac{P(+|D)P(D)}{P(+)} \]

  • There is a way to unpack \(P(+)\), because there are two pathways to observing a positive result.
  • But the immediate problem is that P\((D)\), i.e. the prior , was unspecified.

Bayes rule

\[ P(D|+) = \frac{P(+|D)P(D)}{P(+|D)P(D) + P(+|ND)P(ND)} \]

Disease example, ctd.

\[ P(D|+) = \frac{. 9 P(D)}{.9 P(D) + .05 P(ND)} \]

  • Suppose that the prevalence of the disease is P(D) = 1%.
  • So P(D) is the “base rate”
  • If you knew nothing, that should be your estimate that a randomly encountered person carries the disease
  • With known base rate:

\[ P(D|+) = \frac{. 9 \times .01}{.9 \times .01 + .05 \times .99} = \frac{.009}{.009 + .0495} = 15.38\% \]

Disease example, ctd.

  • Consider a population of 10,000 people
  • 100 are sick
  • 90 of the sick people test positive
  • 9,900 people are healthy
  • Among the healthy, \(9,900 \times .05\) = 495 test positive.
  • So there are 90 + 495 positive test results.
  • Out of the positive results, 90 / 585 = 15.38% are actually sick.

What we just calculated

Disease No disease
Positive test \(Pr(+ \cap D) \times N\) \(Pr(+ \cap ND) \times N\)
Negative \(Pr(- \cap D) \times N\) \(Pr(- \cap ND) \times N\)

Base rate fallacy

Disease No disease
Positive test 90 495
Negative 10 9,405

The correct answer is: \(\frac{90}{(90+495)}\)

Base rate fallacy

Disease No disease
Positive test 90 \(\delta\)
Negative 10 9,405


Most people underestimate the \(\delta\) term: \(\frac{90}{(90+ \delta)}\)


When they do, the estimated \(P(D|+)^{biased}\) will approach 1, as \(\delta \rightarrow 0\).

Base rate fallacy

Disease No disease
Positive test 90 \(\delta\)
Negative 10 9,405


  • The salient (easily imaginable) cases are on the diagonal
  • Key lesson: must remember cases on the off-diagonal

It matters what you condition on

Conditioning on the column

Disease No disease
Positive test \(Pr(+|D)\) \(Pr(+|ND)\)
Negative \(Pr(-|D)\) \(Pr(-|ND)\)

Conditioning on the row

Disease No disease
Positive test \(Pr(D|+)\) \(Pr(ND|+)\)
Negative \(Pr(D|-)\) \(Pr(ND|-)\)

Interpreting the cell entries

Think of these objects as likelihoods of different things you can observe - you only have tests (you never observe the virus)

Disease No disease
Positive test \(Pr(+|D)\) \(Pr(+|ND)\)
Negative \(Pr(-|D)\) \(Pr(-|ND)\)

Think of these objects as hypotheses:

Disease No disease
Positive test \(Pr(D|+)\) \(Pr(ND|+)\)
Negative \(Pr(D|-)\) \(Pr(ND|-)\)

Take-away

You form beliefs about hypotheses based on:

  1. signals

  2. priors


The likelihood ratio \(LR = \frac{Pr(+|D)}{Pr(+|ND)}\) would ideally be greater than 1.

What we started with

Likelihoods (based on test quality)

Disease No disease
Positive test \(Pr(+|D)\) 5%
Negative 10% \(Pr(-|ND)\)

Hypotheses

Disease No disease
Positive test ? ?
Negative ? ?

What we calculated easily

Likelihoods (based on test quality)

  • Easy to fill in because columns need to add up to 100%
  • Why? Recall that we conditioned on columns.
Disease No disease
Positive test 90% 5%
Negative 10% 95%

Hypotheses

Disease No disease
Positive test True positive False positive
Negative False negative True negative

Goal: Forming accurate beliefs

Likelihoods (based on test quality; conditioning on columns)

Disease No disease
Positive test 90% 5%
Negative 10% 95%

Hypotheses

Disease No disease
Positive test True positive False positive
Negative False negative True negative

Cell populations

Disease No disease
Positive test 90% \(\times P(D) \times N\) 5% \(\times P(ND) \times N\)
Negative 10% \(\times P(D) \times N\) 95% \(\times P(ND) \times N\)

How to form accurate beliefs

Once cells are populated with people…

Disease No disease
Positive test 90 495
Negative 10 9,405

… simply calculate proportions PER ROW.

Recall that for hypotheses we are conditioning on rows.

Disease No disease
Positive test TP = 90 / (90+495) FP = 495 / (90+495)
Negative FN = 10 / (10+9405) 9405 / (10+9405)

All hypotheses

The correct beliefs, given the test results shown in a given row:

Disease No disease
Positive test TP = 15.38% FP = 84.62%
Negative FN = 0.11% TN = 99.89%

A note on accuracy

So what does accuracy mean?

It’s the ratio of all correct predictions over all classification attempts.

(90 + 9,405 ) / All observations = 94.95%

  • The fraction of correct classifications (accuracy) is high.
  • But we saw that adjusting beliefs upward too much would have been incorrect.

Useful terms, ctd.

  • P(+|ND) = False positive rate
  • P(-|D) = False negative rate
  • P(+|D) = Sensitivity = True positive rate = Recall
  • P(-|ND) = Specificity = True negative rate

False positives / All positive results = False discovery rate

True positives / All positive results = Positive predictive value (PPV), or precision

A popular measure is the F-score: the harmonic mean of precision and recall.

Application to voter thinking

A simple version of the Besley model

  • Two types of politicians: honest and dishonest
  • Prob(honest) = \(\pi\)
  • An honest politician always provides public goods: B.
  • A dishonest politician may do so as well
    • \(P(B|d) = \lambda\)
    • \(\lambda\) is a disciplining effect of election
    • You can model \(\lambda\) by embedding the scenario in a game-theoretic model, and using backward induction

What voter needs to solve

\[ P(honest | B) = ? \]

Inference problem

  • We know that the ex-ante probability of honesty is \(\pi\).
  • It’s the prevalence of honest politicians
  • Using Bayes’ rule:

\[ P(honest | B)^{BAYES} = \frac{P(h)P(B|h)}{P(h)P(B|h) + P(d)P(B|d)} = \frac{\pi}{\pi + (1-\pi) \lambda} \]

  • Consider the fallacy we just saw
  • Forgetting about the base rate would yield \(\frac{\pi}{(1-\pi) \lambda} = M\).
  • \(M> P(honest | B)\) so the probability that the politician was honest is overstated

An alternative bias

  • Suppose that corrupt politicians “come to mind” easily
  • The voter can easily think of examples

Then \[ P(honest | B)^{AVAIL} = \frac{P(h)P(B|h)}{P(h)P(B|h) + \widehat{P(d)}P(B|d)} \]

Given that \(\widehat{P(d)} > P(d)\):

\[ P(honest | B)^{AVAIL} < P(honest | B)^{BAYES} \]

Our workhorse model

  • The voter faces a choice before the election
  • Let v(.) be the value function.
  • The value depends on the election outcome
  • v(reelect) = B
  • v(change) = 0 or 2 with equal probability
  • Expected utility is the same if E[B] = 1.

Some relevant dimensions of the model

  • What are voters’ beliefs about B?
  • How are those beliefs formed?
  • B may have been observed in the past. If B > 1 it suggests that the politician could be competent, but what if she was lucky? Again, there is uncertainty.
  • How are probabilities (associated with the uncertainty of supporting someone new and untried) perceived?

What a politician does can be interpreted as a “test”

  • A benefit has been realized
  • What is P(honest & capable | B) ?
  • What is P(corrupt | B)
  • And P (corrupt | not B) < 1 (the politician could have been unlucky)

How could politicians try to magnify probabilities?

Simple setup

  • v(reelect) = 1
  • v(change) = 0 with prob \(p\) or 2 with probability \(1-p\).
  • Initially, we said that the objective probability was 1/2.

Implication from availability bias

  • The challenger will talk about many possible ways how the favorable outcome (2) could happen.
  • The incumbent will talk the many reasons why the challenger could fail, trying push up the perceived value of p
  • Imagination is important… unpacking an event into subevents

Lecture 3: Heuristics and Cognitive Biases

What makes something easily retrievable from memory?

  • External reminders (media, politicians…)
  • Familiarity
  • Importance (a closer friend was injured in a car accident…)
  • Personal nature of stories (a friend has a good experience with that brand of the car)
  • Recency (if I was just charged a late fee, it’s still salient, but the pain will dissipate over time)

Cognitive bias

A cognitive bias is a systematic error in thinking that occurs when people are processing and interpreting information in the world around them and affects the decisions and judgments that they make.

  • Some may be inevitable because of imperfect memory and limits on the mind’s ability to process information
  • Inattention
    • Distraction
    • Selective attention

Flawed thinking is easier to spot in others than in ourselves.


Important (but sometimes difficult) to remember

Availability heuristic

What is the probability that, during the next year, your car could be a “total loss” due to an accident?

Availability heuristic

What is the probability that, during the next year, your car could be a “total loss” due to:

  • An accident in which the other driver is drunk?
  • An accident for which you are responsible?
  • An accident occurring while you car is parked on the street?
  • One of the above?

Usual pattern: the first estimated probability is significantly lower.

(But the second way of asking questions simply suggests many reasons why accidents could happen.)

When are perceived possibilities more accurate?

  • Maybe the probability of a bad accident is overestimated when diverse scenarios are considered
  • Then “thinking more” did not improve judgments at all
  • A quick and intuitive answer could have been better

Availability heuristic

  • In a given year, are there more homicides or suicides in the country?
    • 32% answered correctly
  • Do more Americans die in floods or due to excess cold?
    • Former is less likely; 37% answered correctly

Hypothesis: people sample from memory

Availability heuristic

In 4 pages of a novel, do you expect to find more than 10 words that have the form

  • A: 7-letters and n in the sixth position. _____n_
  • B: 7-letters and end with ____ing

Most respondents say that B is more likely.

Law of Small Numbers

  • People often believe that even a short series of random events should mirror the overall properties of the process creating them.
  • For instance, with a fair coin, people might incorrectly think that after several heads in a row, a tail is more likely to occur (this is known as the gambler’s fallacy).
  • Similarly, if the probability of having a boy or a girl is equal, a family with three girls is often expected to have a boy next.
  • As a result, a sequence like BGGBBG is considered more probable than one like BBBBBB
  • This happens because people expect the key features of a random process to show up in small segments, not just in the long run

Misunderstanding regression to the mean

  • Extreme outliers tend to regress toward the mean in subsequent trials (e.g., best performers on the midterm, fighter pilots with the best landings)
    • This leads some people to think that “praise is bad”
  • Intuitively, we expect subsequent trials to be representative of the previous trial, so we fail to anticipate regression to the mean

Is there a tension with the gambler’s fallacy?

  • RTTM: for each iteration of an event we expect the average outcome
  • The point is that expectation should not depend on the history (last observed outcome)
  • Gambler’s fallacy amounts to beliefs that individual coin flips have memory…

Confirmation bias

a type of cognitive bias that involves favoring information that confirms your previously existing beliefs or biases.

For example, imagine that a person holds a belief that left-handed people are more creative than right-handed people. Whenever this person encounters a person that is both left-handed and creative, they place greater importance on this “evidence” that supports what they already believe.

Myside Bias

A specific type of confirmation bias where people favor information that confirms their own existing beliefs or hypotheses. Involves focusing on the strengths of one’s own arguments while simultaneously concentrating on the weakest aspects of opposing claims.

Projection biases

Curse of knowledge

Once you know something, it becomes obvious to you and you assume others know / should know.

False consensus effect

A tendency to overestimate how much other people agree with us, view the world like us, etc.

Social Projection

Expectations about the behavior of others based on one’s own

. . . Students who cheat on their statistics exams believe that many others cheat as well whereas honest students think that cheating is rare.

Example

Grossman and Hopkins find that

  • Democrats are a coalition of groups, motivated to enact specific policies
  • Republicans are anchored in principles and values; in this sense they are “more ideological”
  • The GOP “serves as the vehicle of a conservative ideological movement”

What about perceptions?

  • Republicans: “Democrats want power to push their liberal values”
  • Democrats: “Republicans only want power to please their favorored groups (the rich; white people).”

Self-serving bias

Its default form

Blaming external forces for bad outcomes, claiming credit when good outcomes materialize

Optimism bias (bad name)

If you want something to happen

Biases, ctd.

Social proof

  • Viewing positively what we see others approve of.
  • Feeling allowed/entitled to do something if others are doing it.
  • Wanting to emulate others

Biased expectations

Poor Affective forecasting

  • Typically, people overestimate the affective impact of future events
  • Getting used to hardship
  • Ceasing to appreciate good outcomes

Anchoring heuristic

Outcome bias

Evaluating a choice based on realized consequences, rather than the quality of the decision at the time

Motivated Reasoning

The tendency to process information in a way that aligns with pre-existing beliefs and desired conclusions.

Rather than assessing evidence objectively, individuals are motivated to arrive at a particular outcome, often by selectively seeking out confirming evidence and dismissing contradictory information.

Outrage Signaling

The public expression of condemnation of a moral transgressor. This can serve to enhance one’s own reputation and signal trustworthiness and adherence to group norms.

Virtue Signaling

The act of publicly expressing opinions or sentiments intended to demonstrate one’s good character or moral standing within a community.

Lecture 4: Perspectives on persuasion

ELM

Key claim: what matters is whether a recipient is motivated to engage with a message


A subset of dual-processing theories.



Note: “elaboration” refers to the amount of effort devoted to processing new information and relating it to existing beliefs.

ELM

  • Elaboration = engagement in issue-relevant thinking
  • The degree to which recipients of a message will reflect [scrutinize arguments, etc.] naturally forms a continuum.
  • Central route: Persuasion after thoughtful examination of the evidence
  • Peripheral route: A quick&simple decision rule is applied.

ELM

  • Individuals can be persuaded either by the central or the peripheral route.
  • If a receiver is prepared to expend cognitive effort then the central (arguments-based) route may produce lasting opinion change.
  • Superficial factors, such as likability of the sender of a message play a role when a receiver is engaged via the peripheral route.

Message structure

  • Order of arguments (strongest first or last?)
  • Conclusion omission or explicit conclusion-drawing
  • Recommendation specificity
  • One-sided vs two-sided content? (And should the other side be refuted?)

Message attributes (other)

  • Fear appeals
  • Guilt appeals

Considerations: are they ethical? Are they effective?

Message attributes (other)

  • Channel factors (face-to-face, vs. digital; audio or video inclusion, etc.).

  • Style

  • Language

    • Speed, intensity
    • Political-sounding vs. neutral-sounding…

Sender attributes

  • Familiarity or reputation.
  • Perceived epistemic authority.
  • Social endorsements, including engagement metrics online.

Receiver factors

  • Prior beliefs.
  • Level of involvement with a message.
  • Determinants of political knowledge include self-interest and curiosity about politics.
  • Contextual factors, such as incentives.
  • Demographic characteristics (age, sex, education, digital literacy).

Naive realism

  • Believe that they see the world objectively and without bias.
  • Expect that others will come to the same conclusions, so long as they are exposed to the same information and interpret it in a rational manner.
  • Assume that others who do not share the same views must be ignorant, irrational, or biased

Human judgments: how is incoming information translated into explicit responses?

The route from initial (raw) information to an explicit (reported) response:

  1. Incoming information about the world (possibly biased)
  2. Signal is perceived and processed to create a perception (subjective belief about the world).
  3. If this person is asked to report their beliefs (e.g. state a numerical estimate about the demographic composition of the electorate), the “perception must be transformed from an internal scale into an explicit response”. (Landy et al. 2017)

What does it mean if an explicit estimate is far from an objective measurement?

Incorrect report (color of the cab, % of people with an attribute, etc.) could mean there was an issue during any of the stages.

Possible sources of biases

  1. Raw information was biased in step #1

  2. Bias in step #2 was “introduced when creating a perception from this raw information”

  3. Translating of a perception into a survey report (#3) was too difficult

  4. The subject misreported their perception on purpose

The “Yale model”

  • Asserts that an audience experiences three stages: attention, comprehension, and acceptance.
  • As such, “ads work by getting attention and changing attitudes” (Chandler and Munday, 2020).
  • But the passive view of the audience is outdated.
  • Similarly, the hypodermic needle model assumes that ideas and arguments can be directly transferred from a sender to the intended receiver.

Hypodermic needle model

That’s the idea, born decades ago, that the way to understand the effect of media is to think of it as a direct injection of information, straight into your brain. Your reaction to this information will likely be rapid, predictable, and potent — just as much as a shot of adrenaline to the heart. You learn something terrible about a political candidate; this information injection makes you decide, instantly, not to vote for him.

(Benton, 2023)

Journalists and people around media are sophisticated enough to know that the work we produce doesn’t have huge, life-changing effects on people’s opinions every time we publish.

On the other hand, the hypodermic model can sometimes make media seem all-powerful, which holds a certain allure to those of us who make it.

It can be an especially comfortable mode to fall into when we talk about misinformation and “fake news.”

In general, people think they are sophisticated consumers of information, able to weight new facts appropriately — but other people? Other people? If Facebook tells ’em 2 + 2 is 5, they’ll throw out their calculator.

(Benton, 2023)

Active audience theory

  • In contrast to the hypodermic needle model, audiences do not allow senders to impose their meanings on them.
  • Recipients are active actors, and their involvement includes interpretations and evaluations of messages (after perception and comprehension).
  • This theory rejects the argument that people are “used by the media.”

(Related concept: Oppositional reading.)

Identity-protective cognition

  • A variation of directional motivated reasoning. The objective of the agent is to maintain “status in an affinity group”. (Druckman and McGrath, 2019).
  • Reactance Theory: When people perceive manipulation or a threat to their freedom, they fight back, arguing against the case they hear (predictions include restorative behavior or aggression).

Discrepancy models of belief change

  • People are more likely to absorb a message if their prior views are similar.
  • [see also: Confirmation bias; Prior Attitude Effect; Biased assimilation effect; Selective perception].

Perceptual screen

  • Acts like a filter that shapes how people process and understand political information.
  • Even if two people are exposed to the same data, they may process and remember different information.

Lecture 5: Salience and Stereotypes

Voters need to make inferences about unobserved variables

  • Is the incumbent politician honest / corrupt?
  • Are the candidate’s policy preferences close to mine?
  • If the candidate shares my policy goals, does he or she have have the ability delivery?

Rational formation of predictions would be Bayesian

  • Claim or report (R)
  • Existing view in favor of a hypothesis: Pr(H), e.g. candidate is of high quality.
  • Given the report, opinions are updated as follows:

\[ Pr(H|R) = \frac{Pr(R|H)Pr(H)}{Pr(R|H)Pr(H) + Pr(R|\neg H)Pr(\neg H).} \]

Political stereotypes

Stereotypes as mental shortcuts

“over-simplified image of a type of person or thing”

(Dictionary definition)

Theoretical debate

View 1: Humans are good intuitive statisticians1

View 2: Predictions are insensitive to reliable evidence2


One subset of “middle-ground” explanations includes uncertainty-based re-scaling:

  • Systematic over-estimation of small values as a rational process (Landy et al. 2018)

Stereotypes “come to mind” easily

  • If someone is Irish, then red color is the least likely color for them
  • There are many more dark-haired people from Ireland than there are people with red hair
  • In fact, the most likely color among both groups is dark → safest guess = “dark”.

What’s going on

  • What is P(Red Hair|Irish)? It’s only 10%!

Observations

  • \(Pr(Red~hair)\) may be easier to guess than \(Pr(Red~ hair|Irish)\).
  • So giving data to people might worsen accuracy of beliefs.
  • Ranking or types (hair colors) is the same for both groups.
  • But red hair is “easier to recall” for one group, because \(Pr(Dark~ hair|Irish) = 5 \times Pr(Red~ hair|Irish)\).

Representativeness

“an attribute is representative of a class if it is very diagnostic; that is, the relative frequency of this attribute is much higher in that class than in a relevant reference class.” (Kahneman and Tversky 1983)

Distortions in inference

\(Pr(Red~ hair|Irish)\) is mistakenly over-estimated. Why?


Formally, define representativeness as:

\(t_G^* = argmax_{t \in \{dark,light,red\}}\frac{Pr(t|G)}{Pr(t|\neg G)}\)


It follows that the representative color is red: \(t_{IRISH}^* = 10 > \frac{40\%}{14\%} > \frac{50\%}{85\%}\).

Rational updating about group membership

\(Pr(Irish|Red~ hair) = \frac{Pr(RH|I) \times Pr(I)}{\underbrace{Pr(RH|I) \times Pr(I) + Pr(RH|\neg I) \times Pr(\neg I)}_{Pr(\text{Red hair})}}\)


  • If P(I) is not properly taken into account, then updating is hindered by base rate neglect..

  • Following Bordalo et al. 2016: \(Pr(RH|I)^{st} \neq Pr(RH|I)\).

    • Instead, the true likelihood is influenced by representativeness (and the memory function can take many forms).

BCGS (2016)

\(Pr(RH|I)^{st} = Pr(RH|I) \times \frac{h(R(RH,I))}{\sum{t'}Pr(t'|I) h(R(t',G))}\)


Where:

  • R(t,G)=\(\frac{Pr(t|G)}{Pr(t|\neg G)}\) is representativeness of type \(t\) for group \(G\).
  • h() is an increasing function

Similar problems

  • G = African-American; T = {poor, middle-income, rich}

  • G = Democrat; T = {socialist,…}

  • G = Republican; T = {alt-right,…}

Stereotypes

If you hear “Democrat”…

… is it easy to imagine a young person/protester/voter?




But it can be easy to ask the wrong question here…

Are most young voters supporting Democrats?

According to Catalist:

  • Among voters age 18-29, the (two-party) Democratic vote share was 62%.

  • So yes, most young voters supported Biden.

  • What beliefs would a Bayesian hold about the age distribution among Democrats?

    • Need to know the proportion of voters falling into the age group (18-29).
    • Pr(18-29) = 16%.

Terminology

  • Age groups are categories or groups which have a distribution of types (Democratic vs. Republican voters).

  • Pr(t|G) = Pr(Voted Dem|Age 18-29) is a likelihood, or signal, or (in other settings) an outcome of a test.

    • Formal literature often deals with quality of signals.
    • Signals are diagnostic if they facilitate more accurate updating.
    • Psychological literature deals with difficulties in retrieving signals from memory.
  • Pr(Age 18-29|Voted Dem) is the degree of confidence in a hypothesis that a randomly observed person is a member of an (age) group, given their trait/type. Also known as: posterior probability.

  • “Non-rational” learning can occur for any reason when departure from Bayesian learning is observed. Even if Bayesian learning is attempted, the inputs may be “wrong” (e.g. misrecorded, misremembered…).

Example ctd.: young voters

  • In 2020, 62% of young voters voted for Biden.

  • Then what is Pr(Age 18-29|Voted Dem)?

  • Shorten notation:

    • Y = young = Age: 18-29.
    • VD = Voted for a Democrat.


Bayes rule:

\(Pr(Young|VD) = \frac{Pr(Voted~Dem|Y) \times Pr(Y)}{\underbrace{Pr(Voted~Dem|Y) \times Pr(Y) + Pr(Voted~Dem|Age 30+) \times Pr(Age 30+)}_{Pr(\text{Voted Dem})}}\)

  • Could also plug in the national Democratic vote share for Pr(Voted Dem)=52.3%.
  • Plug in the national (voter) age distribution data.
  • And plug in Pr(Voted Dem|Y) = 62%.

Rational updating based on a trait

  • Conditional on meeting a Democratic voter…
  • The probability that they are young is, by Bayes’ rule: Pr(Age 18-29|Voted Dem) = 18.5%.


  • But Pr(Age 18-29) was only 16%.
  • So a rational agent updated upward, but only slightly.
  • A Democratic voter is not very likely to be young.
  • The stereotypical association (Dem -> young) would be incorrect.

Is the “typical Democratic voter” young?

  • An agent updating according to Bayes’ rule knows the correct answer is “no”.
  • But using Bayes’ rule is difficult, even for trained professionals.
  • If imagining a young Democratic voter is easy, stereotypes will color the perceptions of demographic compositions.

Which type is representative (easy to recall)?

2020 election data:

\(t^*_{YOUNG}= \frac{Pr(Dem|18-29)}{Pr(Dem|30+)} > \frac{Pr(Rep|18-29)}{Pr(Rep|30+)}\), thus a young voter is representative of Democrats…

Is the typical Republican voter old?

  • The answer is again no.
  • But by the same logic and calculations, we see that Pr(Older|Rep.) will be overestimated.
  • An older voter is representative for G = Republican voters.

\(t^*_{65+}= \frac{Pr(Rep|65+)}{Pr(Rep|64 or less)} > \frac{Pr(Dem|65+)}{Pr(Dem|64 or less)}\)

But a Bayesian would correctly calculate that Pr(65+|Rep) = 26.1%.

In fact, Pr(65+|Rep) < Pr(45-64|Rep) = 35.4%, because more voters are middle-aged than 65+ years old.

The impact on politics?

  • Beyond mere misperceptions
  • Salience of weights may be manipulated strategically

Factors influencing voting decisions

Lecture 6: Synthesis and Applications

What is persuasion?

Multiple perspectives

  1. Economic
  2. Psychological
  3. Political

What is persuasion?

Economics

Information is served selectively

Psychology

Persuasion has many forms

  • Exchange of narratives/stories
  • Activation of unconscious processes and desires from an existing map of associations

Politics

  • Slogans: extremely simplified provision of memorable ideas
  • Building a brand or reminding voters of “issue ownership”
  • Appeals to identity, group loyalty and/or arguments that the alternative is worse
  • Calls to action (similar to sellers in the private sector)

Political messaging

  • Should be memorable
  • “What are you for?”
  • May rely on hints, inside knowledge
    • Reading between the lines
    • So-called dog whistles

Classical economic theory: people hold rational expectations

  • People observe data, and update their beliefs (applying Bayes’ rule)

  • Persuasion is data presented strategically

  • Truth will come to light because the market creates incentives for firms to reveal the truth about competitors: the relevant information will ultimately emerge.

  • Problem: Deception is excluded / inadmissible in the formal framework.

  • Prediction: some facts will be selectively omitted.

Psychological perspective

  • Equivalence-based definition
    • Only if you present the same facts can you engage in re-framing a problem
    • Associated with Tewksbury and Scheufele
  • Another school of thought: framing is salience-based - all about selective emphasis
    • Framing as “calling attention to some aspects of reality while obscuring others”
    • Associated with McCombs/UT Austin

Kahneman’s Systems

  • System 1: your brain’s automatic, intuitive thinking mode
  • System 2: careful, deliberate thinking

Faced with bad choices by consumers, such as smoking or undersaving, economists as System 2 thinkers tend to focus on education as a remedy. Show people statistics on deaths from lung cancer, or graphs of consumption drops after retirement, or data on returns on stocks versus bonds, and they will do better. As we have come to realize, such education usually fails. Kahneman’s book explains why: System 2 might not really engage until System 1 processes the message.

Shleifer (2012)

Motivating vaccinations against COVID

Motivating vaccinations against COVID

Motivating vaccinations against COVID

Motivating vaccinations against COVID

Example of a policy in Slovakia

  • A bonus for “recommenders”
  • People who register can say who convinced them to do so
  • Essentially a commission (broker fee?)
    • 30 euros who people below the age of 50
    • 60 euros if the vaccined person is 50-59
    • 90 euros for people aged 60+

SOCIAL (vs cognitive) persuasion

  • Social persuasion

    • Social validation/proof (drink what your friends drink; people go to crowded restaurants, etc.)
    • We imitate people we like (friends/neighbors are best campaigners)
  • Authority (church leaders, parents)

  • Reciprocity (salespeople offer free samples or small gifts)

  • Consistency with the past self

  • Scarcity: an opportunity seems more attractive if it is scarce

  • Distant persuasion (intentional messaging) can only sometimes be social.

The Elaboration Likelihood Model of Persuasion

Individuals modify their opinions either through cognitive shortcuts (rules of thumb / heuristics / peripheral paths) or effortful reasoning.

Next slide: The Elaboration Likelihood Model of Persuasion (chart from Perloff, R. M. (2017). The dynamics of persuasion)

ELM

Today’s arena for persuasion: Social networking

  • We trust recommendations of people like us
  • Product recommendations
  • Social endorsements (better than explicit product reviews)
  • Vendors inform you what people with a similar taste bought (and they test your responsiveness to “special deals”).
  • Influencers can persuade others they have (unique) access to relevant information

Modeling persuasion

  • Basic idea of a psychologically motivated model of persuasion: sender of message taps into already existing beliefs
  • Walter Lippman: persuader tries to create pictures, images, which make people want to do what he wants them to do
  • How are images created, and how can we model their effect?
  • Key concept: associations

  • The persuader needs to tap into the existing map of associations
  • Persuasive messages trigger associations by selectively presenting information
  • Our minds imagine the rest from memories, stereotypes, past experiences, beliefs