Dispelling misconceptions about economics

Isabel Busom Piquer, Jordi Brandts*, Cristina López-Mayán Navarrete, Judith Panades

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

1 Citation (Scopus)

Abstract

Some popular views about the workings of the economy are completely at odds with solid empirical evidence and congruent theoretical explanations and therefore can be qualified as misconceptions. Such beliefs lead to support for harmful policies. Cognitive biases may contribute to explaining why misconceptions persist even when scientific information is provided to people. We conduct two experimental studies to investigate, for the first time in economics, whether presenting information in a refutational way affects people’s beliefs about an important socio-economic issue on which expert consensus is very strong: the harmful effects of rent controls. In the laboratory (Study 1) both our refutational and non-refutational messages induce a belief change in the direction of expert knowledge. The refutational message, however, does not improve significantly on the non-refutational one. In the field (Study 2), where participants are college students receiving economic training, the refutational text improves, subject to some caveats, on standard instruction but not on the non-refutational message. The main overall implications of our results are that providing information moderately reduces the misconception, but does not eliminate it, and that the refutational approach does not work better than providing the same information in a non-refutational manner.
Original languageEnglish
Article number102461
Number of pages19
JournalJournal of Economic Psychology
Volume88
Early online date2021
DOIs
Publication statusPublished - 1 Jan 2022

Keywords

  • Misconceptions; Cognitive bias; Refutation; Experiment; Economic communication; Rent control

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