Correlation Neglect in Voting Decisions: An Experiment
23 Pages Posted: 12 Jun 2019 Last revised: 21 Aug 2019
Date Written: May 12, 2019
We investigate the influence of correlation neglect on information aggregation when a voter has to weigh external information against her preferences. In an online experiment, the subjects have to vote on either a safe or a risky payment of the same expected value for their society. The voters receive either one or two signals providing a hint about which alternative may yield a bonus or a penalty for each member once implemented. Our findings suggest that, in line with theoretical evidence, information aggregation may be improved by correlation neglect since it reduces uninformed voting.
Keywords: correlation neglect, voting, bounded rationality
JEL Classification: D72, D83, C90
Suggested Citation: Suggested Citation