Shareholders in locations recently hit by hurricanes significantly increase their support for environmental proposals even if they never previously voted for similar initiatives. Our results show that changed beliefs about salient climate risks rather than firms’ fundamentals drive the...

The income gradient in political participation is a widely accepted stylized fact. This article asks how income effects on political involvement unfold over time. Using nine panel datasets from six countries, it analyzes whether income changes have short-term effects on political involvement,...

We show that rational but inattentive agents can become polarized, even in expectation. This is driven by agents’ choice of not only how much information to acquire, but also what type of information. We present how optimal information acquisition, and subsequent belief formation, depends...

Poll respondents often attempt to present a positive image by overstating virtuous behaviors. We examine whether people account for this “socially desirable responding” (SDR) when drawing inferences from poll data. In an experiment, we incentivize “predictors” to guess others' choice...

The announcement of Pfizer/BioNTech’s COVID-19 vaccine success on 9 November 2020 led to a global stock market surge. But how did the general public respond to such good news? We report results of a nation-wide natural experiment in the US and the UK on how the vaccine news influenced...

We empirically assess whether hindsight bias has consequences on how citizens evaluate their political actors. Using an incentivized elicitation technique, we demonstrate that people systematically misremember their past policy preferences regarding how to best fight the Covid-19 pandemic. At...

To study how different economic information affect people's perceptions and attitudes towards carbon prices, we conduct an online survey experiment in a representative sample of the German voting population. We find that providing information about the efficiency of carbon prices as well as on...

To study how different economic information affect people's perceptions and attitudes towards carbon prices, we conduct an online survey experiment in a representative sample of the German voting population. We find that providing information about the efficiency of carbon prices as well as on...

I study how people understand and reason about trade and which factors shape their views on trade policy. I design and run large-scale surveys and experiments in the U.S. to elicit respondents' knowledge and understanding of trade. I also ask about their perceived economic gains and...

Laboratory evidence shows that when people have to argue for a given position, they persuade themselves about the position’s factual and moral superiority. Such self-persuasion limits the potential of communication to resolve conflict and reduce polarization. We test for this phenomenon in a...