Speaker: Tilman Fries (LMU Munich)

Title: Narrative Persuasion (coauthored with Kai Barron)

When: Friday, June 14, 10:30am - 12:00pm

Where: Oskar-Morgenstern-Platz 1, 1090 Wien, Lecture hall 17, 2nd floor (map)

Abstract:

We study how one person may try to shape the way another person interprets objective information by proposing a sense-making explanation (or narrative). Using a theory-driven experiment, we investigate the mechanics of such narrative persuasion. Our results reveal several insights. First, narratives are persuasive: We find that they systematically shift beliefs. Second, we demonstrate that narrative fit (coherence with the facts) is a key determinant of persuasiveness. Third, this fit-heuristic is anticipated by narrative-senders, who systematically tailor their narratives to the facts to make them more persuasive. Fourth, we show that the features of a competing narrative predictably influence both narrative construction and adoption. Finally, we evaluate the efficacy of several potential policy interventions aimed at protecting investors. We find that narrative persuasion is difficult to protect against.