| By: |
Thomas Graeber (University of Zurich);
Christopher Roth (LMU Munich, CESifo & NHH);
Florian Zimmermann (University of Bonn & MPI for Behavioral Economics Bonn) |
| Abstract: |
This article reviews how different types of information shape belief
formation. We organize the discussion around two distinctions: whether
information supplies evidence or a frame work for interpreting evidence, and
whether it is qualitative or quantitative. Stories describe individual
instances in qualitative terms, whereas statistics summarize many observations
numerically. Narratives and quantitative models provide qualitative and
quantitative frame works, respectively, for interpreting evidence. We examine
how learning from evidence and learning from models interact: models shape
responses to existing and subsequent evidence, while evidence can prompt model
revision. We argue that qualitative information engages associative cognitive
processes, such as mental simulation and memory retrieval, which tend to give
it a larger and more lasting influence on beliefs than quantitative
information. We then discuss implications for strategic communication and the
supply of information in media markets, and identify challenges and open
questions for future research. |
| Keywords: |
Stories, statistics, narratives, beliefs, learning, qualitative information, models |
| JEL: |
D01 D83 |
| Date: |
2026–10 |
| URL: |
https://d.repec.org/n?u=RePEc:ajk:ajkdps:441 |