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‘Nudging’ risky decision-making: The causal influence of information order

Author

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  • Aimone, Jason A.
  • Ball, Sheryl
  • King-Casas, Brooks

Abstract

Recent studies have suggested a correlation between information acquisition and value maximization in risky decision-making. We show that changing how information is acquired can “nudge” agents into riskier decisions, suggesting that choice architecture influences observed risky decisions.

Suggested Citation

  • Aimone, Jason A. & Ball, Sheryl & King-Casas, Brooks, 2016. "‘Nudging’ risky decision-making: The causal influence of information order," Economics Letters, Elsevier, vol. 149(C), pages 161-163.
    • Handle: RePEc:eee:ecolet:v:149:y:2016:i:c:p:161-163
    DOI: 10.1016/j.econlet.2016.10.030
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    References listed on IDEAS

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    1. Elena Reutskaja & Rosemarie Nagel & Colin F. Camerer & Antonio Rangel, 2011. "Search Dynamics in Consumer Choice under Time Pressure: An Eye-Tracking Study," American Economic Review, American Economic Association, vol. 101(2), pages 900-926, April.
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    3. Judd B. Kessler & Alvin E. Roth, 2012. "Organ Allocation Policy and the Decision to Donate," American Economic Review, American Economic Association, vol. 102(5), pages 2018-2047, August.
    4. Shlomo Benartzi & Richard Thaler, 2007. "Heuristics and Biases in Retirement Savings Behavior," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 81-104, Summer.
    5. David H. Howard, 2007. "Producing Organ Donors," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 25-36, Summer.
    6. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
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    Cited by:

    1. Mark Schneider & Cary Deck & Mikhael Shor & Tibor Besedeš & Sudipta Sarangi, 2019. "Optimizing Choice Architectures," Decision Analysis, INFORMS, vol. 16(1), pages 2-30, March.

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    More about this item

    Keywords

    Risky decision making; Expected value maximization; Nudging; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics

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