Working Paper: CEPR ID: DP11132
Authors: Dennis J. Snower; George Akerlof
Abstract: Standard economics omits the role of narratives (the stories that people tell themselves and others) when they make all kinds of decisions. Narratives play a role in understanding the environment; focusing attention; predicting events; motivating action; assigning social roles and identities; defining power relations; and establishing and conveying social norms. This paper describes the role narratives play in decision making, as it also juxtaposes this description against the backdrop of the Bolshevik-spawned narrative that played a critical role in the history of Russia and the Soviet Union in the 20th Century.
Keywords: narrative; motivation; attention; prediction; identity; social assignment
JEL Codes: A12; A13; A14; D03; D04; D20; D23; D30; D62; D71; D72; D74
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| narratives (Y40) | understanding of environment (Q56) |
| understanding of environment (Q56) | economic choices (D10) |
| narratives (Y40) | motivation (M54) |
| motivation (M54) | economic decisions (G11) |
| narratives (Y40) | attention (Y60) |
| attention (Y60) | economic decisions (G11) |
| narratives (Y40) | predictions of events (C53) |
| predictions of events (C53) | economic decisions (G11) |
| narratives (Y40) | social roles (A11) |
| social roles (A11) | motivations (L21) |
| narratives (Y40) | power relationships (L14) |
| power relationships (L14) | cooperative behavior (C71) |
| narratives (Y40) | social norms (Z13) |
| social norms (Z13) | behavior (C92) |