No Result
View All Result
  • Login
Monday, December 22, 2025
FeeOnlyNews.com
  • Home
  • Business
  • Financial Planning
  • Personal Finance
  • Investing
  • Money
  • Economy
  • Markets
  • Stocks
  • Trading
  • Home
  • Business
  • Financial Planning
  • Personal Finance
  • Investing
  • Money
  • Economy
  • Markets
  • Stocks
  • Trading
No Result
View All Result
FeeOnlyNews.com
No Result
View All Result
Home Economy

Preference Falsification, Marginal Cost, and Cancel Culture

by FeeOnlyNews.com
3 months ago
in Economy
Reading Time: 4 mins read
A A
0
Preference Falsification, Marginal Cost, and Cancel Culture
Share on FacebookShare on TwitterShare on LInkedIn


In my earlier post on preference falsification, I argued that a culture of free speech and open debate is a necessary factor for the benefits of free speech to be fully realized. This post expands on that, examining a common fable involving preference falsification, how the dynamics of preference falsification are different in reality than the fable, and how what is commonly called “cancel culture” is a factor that undermines free speech culture and keeps preference falsification in place.

The fable, as you might have already guessed, is The Emperor’s New Clothes. In that fable, people privately hold the belief that the Emperor is naked, but publicly they express the belief that the Emperor is adorned in splendid garments, because they worry that expressing their private belief will make them appear like fools. However, a child eventually breaks this spell by loudly declaring the Emperor is naked. As soon as he does, the rest of the townspeople join in, and everyone realizes the Emperor is in fact truly naked.

In reality, however, a single person accurately declaring their private belief publicly is not sufficient to break the spell of preference falsification. People feel compelled to falsify their beliefs when they think the views they express are widespread — not universal. Take any proposition you care to imagine — call it p. Suppose 90% of people privately don’t accept p. However, people also think that 90% of people do accept p. To the extent that p has been moralized or politicized, there is a strong reason for those who reject p privately to affirm p publicly. A single person here and there who openly rejects p will simply seem like someone in the (assumed) 10% that rejects p.

This is where marginal cost comes in. In the fable, the first person who accurately declares his public belief faces no sanction of any kind — and everyone immediately becomes willing to publicly admit that they, too, believe the Emperor is naked. In a more realistic scenario, as soon as someone says “the Emperor has no clothes!”, the rest of the crowd would still be strongly inclined to openly shun and mock the person who said it. After all, according to what everyone believed, only the foolish would be unable to see the Emperor’s new clothes — and certainly some foolish people exist. So obviously some people would see the Emperor as naked.

A single person declaring the Emperor has no clothes may be nothing more than a fool exposing his own foolishness. Do you immediately join him and risk making yourself look like another fool in the crowd? What if, as soon as that first person declares the Emperor is naked, the crowd immediately mocks them as an unenlightened rube who can’t see the obviously splendid garb adorning the Emperor? Most people, I suspect, would feel the urge to pretend they could see the Emperor’s clothes an join in on the mockery. The marginal cost of being the first person to declare the Emperor naked would be very high.

One of the arguments Musa al-Gharbi makes in his book We Have Never Been Woke is that each “Awokening” is strikingly parallel to the Awokenings that came before. Cancel culture, he points out, was a common feature of the second Great Awokening, although at the time it was described as “trashing.” He quotes from a magazine published in the 1970s describing the practice:

Trashing has reached epidemic proportions…What is “trashing,” this colloquial term that expresses so much, yet explains so little?…It is not done to expose disagreements or resolve disputes. It is done to disparage and destroy. The means vary…Whatever methods are used, trashing involves a violation of one’s integrity, a declaration of one’s worthlessness, and an impugning of one’s motives. In effect, what is attacked is not one’s ideas, but one’s self. This attack is accomplished by making you feel that your very existence is inimical to the Movement and that nothing can change this short of ceasing to exist. These feelings are reinforced when you are isolated from your friends as they become convinced that their association with you is similarly inimical to the Movement and to themselves. Any support of you will taint them. Eventually all your colleagues join in a chorus of condemnation which cannot be silenced, and you are reduced to a mere parody of yourself.

Whether it’s being mocked by the crowd watching the Emperor’s parade, or being trashed, or being canceled, the cost of accurately revealing one’s private beliefs can be very high, even when that private belief is actually widely held. In my previous post, I mentioned how nearly 90% of students feel pressured to present themselves are more left-wing than they actually are because they believe their social and academic success depends on it.

But while costly, this is also a diminishing marginal cost. As the person most willing to defy the crowd makes their private beliefs publicly known, they make others slightly more willing to do so themselves, because those others feel slightly less alone in their beliefs. This can make someone who was slightly less willing to defy the crowd now willing to do so as well — and so on. Eventually, there is some tipping point where what was hidden private knowledge can all come cascading out as public knowledge, and everyone in the crowed becomes willing to admit that they, too, see the Emperor as naked.

In the absence of a free speech culture, however, this tipping point may never be reached. Suppose there were 1,000 people in the crowd, and the tipping point would come at the 150th person. Once the 150th person says they, too, see the Emperor is naked, suddenly everyone’s true opinion comes out as well. If cancel culture, or trashing, or whatever you prefer to call it, keeps the cost of revealing one’s private preference so high that it remains above the marginal cost that 150th person is willing to pay, the Emperor will remain naked and the majority of the crowd will still continue to falsify their beliefs.

 

As an Amazon Associate, Econlib earns from qualifying purchases.



Source link

Tags: CancelCostCultureFalsificationMarginalPreference
ShareTweetShare
Previous Post

FCA Seeks Public Views on Bringing Crypto Under Traditional Financial Standards

Next Post

Metal Raises $5M to Build the Operating System for Private Equity Diligence – AlleyWatch

Related Posts

Links 12/21/2025 | naked capitalism

Links 12/21/2025 | naked capitalism

by FeeOnlyNews.com
December 21, 2025
0

The art of Pysanky: traditional egg decorating from Europe 📹vilsonpessanka pic.twitter.com/deAXF6ETty — Science girl (@sciencegirl) December 20, 2025 James Webb...

The Sunday Morning Movie Presents: An Ideal Husband (1969) Run Time: 1H 22M Bonus: Woo!

The Sunday Morning Movie Presents: An Ideal Husband (1969) Run Time: 1H 22M Bonus: Woo!

by FeeOnlyNews.com
December 21, 2025
0

Greetings gentle readers and welcome to another installment of the Sunday Morning Movie. Today it’s an adaptation of Oscar Wilde’s...

FAKE Financial News – Beware

FAKE Financial News – Beware

by FeeOnlyNews.com
December 21, 2025
0

COMMENT: Marty, I find it curious that platforms like ___ ____ do not interview you when you are the guy...

The EU Is Out Of Control

The EU Is Out Of Control

by FeeOnlyNews.com
December 21, 2025
0

European leaders were forced to back down on stealing the Russian assets, and have agreed to keep Ukraine funded for...

Looking Back and Forth | Mises Institute

Looking Back and Forth | Mises Institute

by FeeOnlyNews.com
December 20, 2025
0

What is the Mises Institute? The Mises Institute is a non-profit organization that exists to promote teaching and research in...

Links 12/20/2025 | naked capitalism

Links 12/20/2025 | naked capitalism

by FeeOnlyNews.com
December 20, 2025
0

Kangaroos fix their posture to save energy at high hopping speeds, study shows PhysOrg. An IgNobel candidate? Pumas in Patagonia...

Next Post
Metal Raises M to Build the Operating System for Private Equity Diligence – AlleyWatch

Metal Raises $5M to Build the Operating System for Private Equity Diligence – AlleyWatch

‘Bad data is AI’s kryptonite’: Experts suggest businesses fix their data first before investing too

'Bad data is AI's kryptonite': Experts suggest businesses fix their data first before investing too

  • Trending
  • Comments
  • Latest
EBRI: 401(k) loans serve as health and housing lifeline

EBRI: 401(k) loans serve as health and housing lifeline

December 16, 2025
Newsom, DeSantis join forces to blast ‘idiotic’ push to allow oil drilling off coasts of California, Florida

Newsom, DeSantis join forces to blast ‘idiotic’ push to allow oil drilling off coasts of California, Florida

November 23, 2025
What is a credit card spending limit — and what to know

What is a credit card spending limit — and what to know

August 4, 2025
BAT to offload ITC Hotels shares worth Rs 2,948 crore via a block deal

BAT to offload ITC Hotels shares worth Rs 2,948 crore via a block deal

December 4, 2025
Links 12/10/2025 | naked capitalism

Links 12/10/2025 | naked capitalism

December 10, 2025
5 Senior Discounts Being Eliminated by National Retailers

5 Senior Discounts Being Eliminated by National Retailers

December 7, 2025
XRP Price Recovery Attempt Sparks Question: Is Momentum Turning?

XRP Price Recovery Attempt Sparks Question: Is Momentum Turning?

0
Mind Over Money: How mindfulness, yoga and games help CareEdge Ratings’ Sachin Gupta stay sharp under pressure

Mind Over Money: How mindfulness, yoga and games help CareEdge Ratings’ Sachin Gupta stay sharp under pressure

0
After GOP fights about antisemitism, JD Vance rejects ‘purity tests’

After GOP fights about antisemitism, JD Vance rejects ‘purity tests’

0
Key metrics from KB Home’s (KBH) Q4 2025 earnings results

Key metrics from KB Home’s (KBH) Q4 2025 earnings results

0
7 Funeral Cost Surprises Families Discover in Winter

7 Funeral Cost Surprises Families Discover in Winter

0
Protecting a Societal Cancer with a Web of Lies

Protecting a Societal Cancer with a Web of Lies

0
XRP Price Recovery Attempt Sparks Question: Is Momentum Turning?

XRP Price Recovery Attempt Sparks Question: Is Momentum Turning?

December 21, 2025
Mind Over Money: How mindfulness, yoga and games help CareEdge Ratings’ Sachin Gupta stay sharp under pressure

Mind Over Money: How mindfulness, yoga and games help CareEdge Ratings’ Sachin Gupta stay sharp under pressure

December 21, 2025
Senators Confirm CLARITY Act January Markup as Crypto Market Structure Framework Advances

Senators Confirm CLARITY Act January Markup as Crypto Market Structure Framework Advances

December 21, 2025
After GOP fights about antisemitism, JD Vance rejects ‘purity tests’

After GOP fights about antisemitism, JD Vance rejects ‘purity tests’

December 21, 2025
Tata Capital invests in Vodafone Idea bond issue

Tata Capital invests in Vodafone Idea bond issue

December 21, 2025
Tariff refunds are unlikely because that would be ‘very complicated,’ Hassett says

Tariff refunds are unlikely because that would be ‘very complicated,’ Hassett says

December 21, 2025
FeeOnlyNews.com

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Economy
  • Financial Planning
  • Investing
  • Market Analysis
  • Markets
  • Money
  • Personal Finance
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • XRP Price Recovery Attempt Sparks Question: Is Momentum Turning?
  • Mind Over Money: How mindfulness, yoga and games help CareEdge Ratings’ Sachin Gupta stay sharp under pressure
  • Senators Confirm CLARITY Act January Markup as Crypto Market Structure Framework Advances
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclaimers
  • About Us
  • Contact Us

Copyright © 2022-2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Business
  • Financial Planning
  • Personal Finance
  • Investing
  • Money
  • Economy
  • Markets
  • Stocks
  • Trading

Copyright © 2022-2024 All Rights Reserved
See articles for original source and related links to external sites.