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January 24th, 2019

↳ Miscellaneous

Why Rational People Polarize


U.S. politics is beset by increasing polarization. Ideological clustering is common; partisan antipathy is increasing; extremity is becoming the norm (Dimock et al. 2014). This poses a serious collective problem. Why is it happening? There are two common strands of explanation.

The first is psychological: people exhibit a number of “reasoning biases” that predictably lead them to strengthen their initial opinions on a given subject matter (Kahneman et al. 1982; Fine 2005). They tend to interpret conflicting evidence as supporting their opinions (Lord et al. 1979); to seek out arguments that confirm their prior beliefs (Nickerson 1998); to become more confident of the opinions shared by their subgroups (Myers and Lamm 1976); and so on.

The second strand of explanation is sociological: the modern information age has made it easier for people to fall into informational traps. They are now able to use social media to curate their interlocutors and wind up in “echo chambers” (Sunstein 2017; Nguyen 2018); to customize their web browsers to construct a “Daily Me” (Sunstein 2009, 2017); to uncritically consume exciting (but often fake) news that supports their views (Vosoughi et al. 2018; Lazer et al. 2018; Robson 2018); and so on.

So we have two strands of explanation for the rise of American polarization. We need both. The psychological strand on its own is not enough: in its reliance on fully general reasoning tendencies, it cannot explain what has changed, leading to the recent rise of polarization. But neither is the sociological strand enough: informational traps are only dangerous for those susceptible to them. Imagine a group of people who were completely impartial in searching for new information, in weighing conflicting studies, in assessing the opinions of their peers, etc. The modern internet wouldn’t force them to end up in echo chambers or filter bubbles—in fact, with its unlimited access to information, it would free them to form opinions based on ever more diverse and impartial bodies of evidence. We should not expect impartial reasoners to polarize, even when placed in the modern information age.

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November 9th, 2018

Banking with Imprecision


​In 1596, Spanish troops under the leadership of the Duke of Medina-Sidonia set fire to their own ships in the waters near Cadiz. The sinking of these thirty-two vessels was a tactical necessity: a joint Anglo-Dutch navy had annihilated the slapdash defenses of the city, driving the Spanish ships off to nearby Puerto Real. The Spanish had preferred to see their ships sunk rather than captured by the enemy. Cadiz itself was occupied and sacked, and its most prominent civilians were held for ransom. War, as the Spanish were acutely aware, was very costly. Later that very year, Philip II, King of Spain, would declare bankruptcy. 1

Though he was one of the most powerful monarchs of the era, it is difficult to sympathize with the sheer magnitude of the work with which King Philip II of Spain had to contend. Not only did he have to protect his Iberian possessions, but he also had to prosecute a war against the recalcitrant Dutch in the Low Countries, outmaneuver the Protestants in France, and maintain a bulwark against the Turks in the Mediterranean. 2

In their book, Lending to the Borrower from Hell, Drelichman and Voth have done a remarkable job of illuminating Spanish finance in the 16th century.Notably, the fiscal machinery underpinning imperial operations was managed mostly by a tight-knit cartel of Genoese bankers. Sovereign lending, astonishingly, allowed for a plethora of state actions in a time before instant communication. The foundations of empire rested on a relatively simple model: control certain streams of income and then borrow against them. The institutional origins of our modern sovereign lending come from this tradition. Dealing with uncertainty is an inherent part of this model – now as it was then. What is of use to modern scholars is how the same problem was conceived of and partly surmounted by our institutional forebears.

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October 22nd, 2018

About the Phenomenal World


The Phenomenal World is a new publication that publishes research, analysis, and commentary on applied social science. We chose this name for our blog because we hope to publish work that addresses the social world in all its apparent complexity.

Our contributors are economists, philosophers, social scientists, data scientists, and policy researchers. You’ll find posts on metaresearch; basic income, welfare and the commonwealth; digital ethics; education; economic history; and evolving institutions. We also post our weekly newsletter, a roundup of recommended reading from across the social sciences. Posts are wide-ranging in subject matter, length, and style.

The Phenomenal World is managed by staff of the Jain Family Institute, an applied research organization that works to bring just research and policy from theoretical conception to actual implementation in society. We welcome submissions. Please see our About page for more information on submitting, and for the sign-up form for our newsletter.

Thank you for reading.

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