alternative rules of thumb. In the model, firms must set their prices in face of aggregate demand shocks. Their payoff depends on … the level of aggregate demand, as well as on their own price and their neighbor s price. The latter assumption captures … rule that firms can easily adopt, the economy does not converge to the REE for highly autocorrelated aggregate demand …

, agents can either decide rationally according to expected utility theory or intuitively according to case-based decision … theory. Rational decisions are more precise but create higher costs, though these costs may decrease over time. We find that …

We examine the relative importance of accuracy concerns and belief confirmation motives in driving the demand for news …, left-wing biased, or unbiased way. We then measure demand for a newsletter covering articles from this outlet. Respondents … only reduce their demand for biased news if the bias is inconsistent with their own political beliefs, suggesting a trade …

Using a large-scale online experiment with more than 8,000 U.S. respondents, we examine how the demand for a politics … newsletter changes when the newsletter content is fact-checked. We first document an overall muted demand for fact-checking when …-checking reduces demand among respondents with strong ideological views and increases demand among ideologically moderate respondents …