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Departmental Seminar - Georgy Egorov (Kellogg MEDS)

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Location: S2.79

This is part of the Political Economy Seminar Series, seminar organisers: Kirill Pogorelskiy and Helios Herrera

The title of paper is

From Extreme to Mainstream: How Social Norms Unravel (with Leonardo Bursztyn and Stefano Fiorin)

Abstract: Social norms, usually persistent, can unravel quickly when new public information arrives, such as a surprising election outcome. In our model of strategic communication, senders state their opinion but they can lie to pander to the popular view; receivers thus make less inference about such senders. We test the model's predictions with two experiments. On the sender's side, we show via revealed preference that Donald Trump's rise in popularity and eventual victory increased individuals' willingness to publicly express xenophobic views. On the receiver's side, we show that individuals are judged less negatively if they expressed a xenophobic view in an environment where the view is popular.

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