Information avoidance
We commonly think of information as a means to an end. However, a growing theoretical
and experimental literature suggests that information may directly enter the agent's utility …
and experimental literature suggests that information may directly enter the agent's utility …
Probability and risk: Foundations and economic implications of probability-dependent risk preferences
H Fehr-Duda, T Epper - Annu. Rev. Econ., 2012 - annualreviews.org
A large body of evidence has documented that risk preferences depend nonlinearly on
outcome probabilities. We discuss the foundations and economic consequences of …
outcome probabilities. We discuss the foundations and economic consequences of …
Suspense and surprise
We model demand for noninstrumental information, drawing on the idea that people derive
entertainment utility from suspense and surprise. A period has more suspense if the …
entertainment utility from suspense and surprise. A period has more suspense if the …
[HTML][HTML] Audits, audit effectiveness, and post-audit tax compliance
This study uses a laboratory experiment to investigate the effect of audit effectiveness, or the
share of undeclared income that the tax agency detects in an audit, on post-audit tax …
share of undeclared income that the tax agency detects in an audit, on post-audit tax …
Incentives in experiments: A theoretical analysis
Y Azrieli, CP Chambers… - Journal of Political …, 2018 - journals.uchicago.edu
Experimental economists currently lack a convention for how to pay subjects in experiments
with multiple tasks. We provide a theoretical framework for analyzing this question …
with multiple tasks. We provide a theoretical framework for analyzing this question …
Reference-dependent consumption plans
B Kőszegi, M Rabin - American Economic Review, 2009 - aeaweb.org
We develop a rational dynamic model in which people are loss averse over changes in
beliefs about present and future consumption. Because changes in wealth are news about …
beliefs about present and future consumption. Because changes in wealth are news about …
Information gaps: A theory of preferences regarding the presence and absence of information.
R Golman, G Loewenstein - Decision, 2018 - psycnet.apa.org
We propose a theory of preferences for acquiring or avoiding information and for exposure
to uncertainty (ie, risk or ambiguity) which is based on thoughts and feelings about …
to uncertainty (ie, risk or ambiguity) which is based on thoughts and feelings about …
Compound-risk aversion, ambiguity and the willingness to pay for microinsurance
Index insurance–in which payments are based on an index correlated with, but not identical
to, individual losses–has been faced with an unexpectedly low uptake, despite its promise …
to, individual losses–has been faced with an unexpectedly low uptake, despite its promise …
[PDF][PDF] The cost of optimally-acquired information
AW Bloedel, W Zhong - Unpublished Manuscript, November, 2020 - wjzhong.com
This paper develops a theory for the expected cost of optimally acquired information when
information can be acquired sequentially. We study the “reduced-form” Indirect Cost …
information can be acquired sequentially. We study the “reduced-form” Indirect Cost …
Cautious expected utility and the certainty effect
Many violations of the independence axiom of expected utility can be traced to subjects'
attraction to risk‐free prospects. The key axiom in this paper, negative certainty …
attraction to risk‐free prospects. The key axiom in this paper, negative certainty …