Preferences for the resolution of uncertainty and the timing of information
- Creators
- Nielsen, Kirby
Abstract
We present results from a laboratory experiment designed to elicit preferences over the resolution of uncertainty and timing of non-instrumental information acquisition in a rich choice set. Treatments vary whether the uncertainty is framed as a compound lottery or information structure. We find that individuals prefer to delay uncertainty resolution when the choice is framed as a compound lottery and prefer to expedite uncertainty resolution when framed as an information structure. Preferences are strict, as individuals are willing to pay for information in one treatment and they pay to avoid information in the other. We find no evidence of an aversion to gradual resolution in either context.
Additional Information
© 2020 Elsevier Inc. Received 3 April 2018, Revised 24 March 2020, Accepted 26 June 2020, Available online 7 July 2020. I am very grateful to the Co-editor and two anonymous referees whose comments and suggestions greatly improved the paper. I thank Yaron Azrieli, Doug Bernheim, Puja Bhattacharya, Alex Brown, Evan Calford, Katie Coffman, Sean Hofland, Ritesh Jain, John Kagel, Ian Krajbich, Yusufcan Masatlioglu, Matthew McMahon, Muriel Niederle, Ryan Oprea, Pietro Ortoleva, Collin Raymond, and John Rehbeck for many helpful conversations and suggestions. I am especially grateful to Paul J. Healy for his time, advice, and encouragement. I also thank participants at the Sixth Annual Bounded Rationality in Choice Conference, 2018 Spring School in Behavioral Economics, Summer School of the Econometric Society 2017, Midwest Economic Association 2017 meeting, the Economic Science Association 2017 North America Meeting, and the Ohio State Theory Colloquium for many helpful comments. Research support was provided by the Decision Science Collaborative and Journal of Money, Credit, and Banking Small Research Grants, Ohio State University. This experiment was approved by the Institutional Review Board at The Ohio State University.Attached Files
Submitted - Resolution-of-Uncertainty_180402-1.pdf
Supplemental Material - 1-s2.0-S0022053120300843-mmc1.pdf
Supplemental Material - 1-s2.0-S0022053120300843-mmc2.pdf
Supplemental Material - 1-s2.0-S0022053120300843-mmc3.pdf
Supplemental Material - 1-s2.0-S0022053120300843-mmc4.pdf
Supplemental Material - 1-s2.0-S0022053120300843-mmc5.pdf
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Additional details
- Eprint ID
- 104401
- DOI
- 10.1016/j.jet.2020.105090
- Resolver ID
- CaltechAUTHORS:20200716-095432931
- Ohio State University
- Created
-
2020-07-16Created from EPrint's datestamp field
- Updated
-
2021-11-16Created from EPrint's last_modified field