What question did this study set out to answer?

This research aims to explore the sources of information frictions affecting household inflation expectations.

Inflation Expectations, Learning, and Supermarket Prices: Evidence from Survey Experiments

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Survey experiments reveal how information frictions influence inflation expectations and pricing behaviors.

This research aims to explore the sources of information frictions affecting household inflation expectations.
Conducted survey experiments to gather data on inflation expectations and cognitive biases.
Analyzed respondents' recall of price changes versus actual inflation statistics.
Investigated the impact of low inflation contexts on individuals' inflation priors.
Individuals in low inflation contexts demonstrated significantly weaker priors about inflation rates.
Cognitive limitations led individuals to rely on inaccurate memories of prices rather than factual inflation data.
Findings suggest that rational inattention and cognitive biases contribute to information frictions in inflation expectations.

Cavallo et al. (2017) studied this question.

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