Abstract This paper discusses two conservative ways of treating evidence. (I) Closing inquiry involves discounting evidence bearing on one's belief unless it is particularly strong evidence; (II) biased assimilation dedicating more investigative resources to scrutinizing disconfirming (than confirming evidence), thereby increasing the chances finding reasons dismiss it. It natural worry that th...

We consider the case where individuals derive utility from feeling good about themselves and their group, but where the satisfaction of such preferences may come at a cost. In other contexts, what people want to believe is considered irrational, but in our model, these are preferences like any other. Equilibrium subjective beliefs concerning whether one’s group has acted appropriately are endog...