The Economics and Politics of Alternative Realities

Introduction

Many people hold systems of wrong beliefs, which combine into a semi-coherent alternative reality based on the sinister motives of influential actors.

Model Development

I build models of the supply of and demand for such alternative realities. The key idea is that people believing in alternative realities misperceive not only features of the environment but also the incentives of other actors.

Applications of the Supply Side Framework

Applications of my supply side framework include:

1. The analysis of political conspiracy theories that serve to discredit the intellectual elite.
2. Fear mongering to prompt mobilization in a conflict.
3. Anti-state narratives that serve to generate political support for fiscal conservatism.

Demand Side Approach

My demand side approach formalizes the idea that individuals believe in alternative realities to protect a set of core beliefs fundamental to maintaining their preferred identities.

Conclusions

These models explain stylized facts in domestic and foreign politics, and generate new predictions which I test.