Physics

Pedagogy

Key (lock)

Recall

Dynamics (music)

Voltage

Cognitive psychology

Psychology

Economics

Microeconomics

Incentive

Deception

Computer science

Quantum mechanics

Computer security

Social psychology

Negative feedback

American Economic Review

A key question in the literature on motivated reasoning and self-deception is how motivated beliefs are sustained in the presence of feedback. In this paper, we explore dynamic motivated belief patterns after feedback. We establish that positive feedback has a persistent effect on beliefs. Negative feedback, instead, influences beliefs in the short run, but this effect fades over time. We investigate the mechanisms of this dynamic pattern, and provide evidence for an asymmetry in the recall of feedback. Finally, we establish that, in line with theoretical accounts, incentives for belief accuracy mitigate the role of motivated reasoning. (JEL C91, D83, D91)

The Dynamics of Motivated Beliefs