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Preferences for the resolution of uncertainty and the timing of information

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  • 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.

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  • Nielsen, Kirby, 2020. "Preferences for the resolution of uncertainty and the timing of information," Journal of Economic Theory, Elsevier, vol. 189(C).
    • Handle: RePEc:eee:jetheo:v:189:y:2020:i:c:s0022053120300843
    DOI: 10.1016/j.jet.2020.105090
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    Citations

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    3. Felix Chopras & Ingar Haaland & Christopher Roth, 2024. "The Demand for News: Accuracy Concerns Versus Belief Confirmation Motives," The Economic Journal, Royal Economic Society, vol. 134(661), pages 1806-1834.
    4. Francesco Capozza & Ingar Haaland & Christopher Roth & Johannes Wohlfart, 2021. "Studying Information Acquisition in the Field: A Practical Guide and Review," CEBI working paper series 21-15, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    5. Ilke Aydogan & Loïc Berger & Valentina Bosetti, 2023. "Unraveling Ambiguity Aversion," Post-Print hal-04370668, HAL.
    6. David Dillenberger & Uzi Segal, 2021. "Allocation Mechanisms without Reduction," American Economic Review: Insights, American Economic Association, vol. 3(4), pages 455-470, December.
    7. Chopra, Felix & Haaland, Ingar & Roth, Christopher, 2022. "Do people demand fact-checked news? Evidence from U.S. Democrats," Journal of Public Economics, Elsevier, vol. 205(C).
    8. Felix Chopra & Ingar K. Haaland & Christopher Roth, 2021. "The Demand for Fact-Checking," CESifo Working Paper Series 9061, CESifo.
    9. Ganesh Iyer & Zemin (Zachary) Zhong, 2022. "Pushing Notifications as Dynamic Information Design," Marketing Science, INFORMS, vol. 41(1), pages 51-72, January.
    10. repec:hal:wpaper:hal-04071242 is not listed on IDEAS
    11. Meissner, Thomas & Pfeiffer, Philipp, 2022. "Measuring preferences over the temporal resolution of consumption uncertainty," Journal of Economic Theory, Elsevier, vol. 200(C).
    12. Mohammed Abdellaoui & Enrico Diecidue & Emmanuel Kemel & Ayse Onculer, 2022. "Temporal Risk: Utility vs. Probability Weighting," Management Science, INFORMS, vol. 68(7), pages 5162-5186, July.
    13. John Duffy & Janet Hua Jiang & Huan Xie, 2021. "Pricing Indefinitely Lived Assets: Experimental Evidence," CIRANO Working Papers 2021s-32, CIRANO.
    14. Castagnetti, Alessandro & Schmacker, Renke, 2022. "Protecting the ego: Motivated information selection and updating," European Economic Review, Elsevier, vol. 142(C).

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    More about this item

    Keywords

    Resolution of uncertainty; Information preferences; Anticipatory emotions;
    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
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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