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Polarization and extremism emerge from rational choice

{Polarization is often thought to be the product of biased information search, motivated reasoning, or other psychological biases. However, polarization and extremism can still occur in the absence of any bias or irrational thinking. In this paper, we show that polarization occurs among groups of decision makers who are implementing rational choice strategies that maximize decision efficiency. This occurs because extreme information enables decision makers to make up their minds and stop considering new information, whereas moderate information is unlikely to trigger a decision. Furthermore, groups of decision makers will generate extremists -- individuals who hold strong views despite being uninformed and impulsive. In re-analyses of seven previous empirical studies on both perceptual and preferential choice, we show that both polarization and extremism manifest across a wide variety of choice paradigms. We conclude by offering theoretically-motivated interventions that could reduce polarization and extremism by altering the incentives people have when gathering information.