How Does Associative Recall Shape the Process of Belief Formation?

Florian Zimmermann
Profile Picture of - Florian Zimmermann

Florian Zimmermann

Abstract information

How people form beliefs (about the stock or housing markets for example) is an important area of study for economists. In this video, FLORIAN ZIMMERMANN explores the role that memory plays in belief formation. More specifically, Zimmermann studies associative recall, the way in which the recall of memory trace is triggered by cues that are mentally associated with that trace. Zimmermann’s experiment involves participants being provided with information (positive and negative) about hypothetical companies. After a time lapse, they are asked to assess the values of these companies. The research shows that respondents consistently overreact to the last piece of information that they receive. Additionally, the work presents a new experimental paradigm for studying the role that associative recall and other memory imperfections play in the process of belief formation.

DOI:

https://doi.org/10.21036/LTPUB10906

Researcher

Florian Zimmermann is a Professor of Economics at the Institute on Behavior and Inequality and at the University of Bonn. He has previously worked at the University of Zurich and at Harvard University. Zimmermann’s research centers on behavioral and experimental economics. An Associate Editor at the Quarterly Journal of Economics and the Journal of the European Economic Association, Zimmermann’s current work on memory and belief formation is supported by an ERC Sterting Grant (2020-2025).

Institution information

University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

The University of Bonn is one of Germany’s most prestigious and research-intensive institutions, consistently ranked among the top universities worldwide. Founded in 1818, it is celebrated for its academic excellence, particularly in mathematics and economics, and boasts a record of producing several Nobel Laureates and Fields Medalists. Located in the former German capital, the university is integrated into the city’s historic fabric, offering a vibrant international environment and a diverse range of programs across seven faculties. As a member of the elite U15 group, it remains a global leader in innovation and higher education.
University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)
Cover Photo of - University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

Original Publication

Associative Memory and Belief Formation

Benjamin Enke,

Frederik Schwerter,

Florian Zimmermann

Published in

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Ezra Klein

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Citation

Florian Zimmermann, 

Latest Thinking, 

How Does Associative Recall Shape the Process of Belief Formation?, 

https://doi.org/10.21036/LTPUB10906, 

Credits:

© Florian Zimmermann 

and Latest Thinking

This work is licensed under CC-BY 4.0