The symbolic work of prices

By Akash Miharia, Jan Osborn & Bart J. Wilson. In The Review of Austrian Economics.

Abstract:

"We posit that prices are signs, not just signals, that work in the same symbolic way as words. Both are complex, generative systems of shared meaning that rely on a web of intricate symbolic references. Just like the meaning of a word is a product of our social and linguistic action, the meaning of a price is a product of our relationship to the physical world phenomena of people in markets. The fundamental conception of both is to communicate and construct worlds with ourselves and others, enabling us to act in the world. Prices, like words, do symbolic work."

Personal narratives build trust across ideological divides

By David Hagmann, Julia A. Minson & Catherine H. Tinsley.

"Abstract

Lack of trust is a key barrier to collaboration in organizations and is exacerbated in contexts when employees subscribe to different ideological beliefs. Across five preregistered experiments, we find that people judge ideological opponents as more trustworthy when opposing opinions are expressed through a self-revealing personal narrative than through either data or stories about third parties—even when the content of the messages is carefully controlled to be consistent. Trust does not suffer when explanations grounded in self-revealing personal narratives are augmented with data, suggesting that our results are not driven by quantitative aversion. Perceptions of trustworthiness are mediated by the speaker’s apparent vulnerability and are greater when the self-revelation is of a more sensitive nature. Consequently, people are more willing to collaborate with ideological opponents who support their views by embedding data in a self-revealing personal narrative, rather than relying on data-only explanations. We discuss the implications of these results for future research on trust as well as for organizational practice."

Maybe personal narratives are emotional and emotions are costly to fake. So the message is more believable. This reminds me of one of my papers, The Intersection of Economic Signals and Mythic Symbols.

"Abstract 

Mythic symbols and economic signals represent more than what they are. Symbols represent universal ideas and themes and evoke feelings and emotions while economic signals are simple, efficient signs that stand for a more complex set of costly to learn characteristics and information. Symbols deal with the irrational and economic signals deal with the rational. Many of the signals cited in the economic literature work well because they have a symbolic element that speaks to people's emotions. By evoking emotions, a signal makes the receiver feel more confident about the truthfulness of the information it represents. The intersection of symbols and signals illustrates the relationship between the rational world of facts and irrational world of emotions and values, a relationship which needs to be explored as part of the development of the ideal type of homosocioeconomicus, the selfish yet value and community driven person."