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 …

A large body of evidence has documented that risk preferences depend nonlinearly on
outcome probabilities. We discuss the foundations and economic consequences of …

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 …

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 …

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 …

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 …

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 …

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 …

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 …

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 …