(joint work with Christoph Schottmueller)
Abstract: Why do people appear to forgo information by sorting into “echo chambers”? We construct a highly tractable multi-sender, multi-receiver cheap talk game in which players choose with whom to communicate. We show that segregation into small, homogeneous groups can improve everybody’s information and generate Paretoimprovements. Polarized preferences create a need for segregation; uncertainty about preferences magnifies this need. Using data from Twitter, we show several behavioral patterns that are consistent with the results of our model.
The Economic Theory Lunchtime Workshops are convened by Meg Meyer.