A test of information aversion
The standard Bayesian model implies that information can never have a negative value. We put this implication to the proof. Our paper provides the first test of the value (positive or negative) of information under uncertainty. We show that the "Bayesian implication" stands in conflict wit...
Gespeichert in:
| Hauptverfasser: | , |
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| Dokumenttyp: | Buch/Monographie Arbeitspapier |
| Sprache: | Englisch |
| Veröffentlicht: |
Heidelberg
University of Heidelberg, Department of Economics
April 2020
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| Schriftenreihe: | Discussion paper series / University of Heidelberg, Department of Economics
no. 682 |
| In: |
Discussion paper series (no. 682)
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| DOI: | 10.11588/heidok.00028244 |
| Schlagworte: | |
| Online-Zugang: | Verlag, kostenfrei: http://archiv.ub.uni-heidelberg.de/volltextserver/28244/7/Kops_2020_dp682.pdf Resolving-System, kostenfrei: https://doi.org/10.11588/heidok.00028244 Resolving-System, kostenfrei: http://hdl.handle.net/10419/235005 Resolving-System, kostenfrei, Volltext: https://nbn-resolving.org/urn:nbn:de:bsz:16-heidok-282444 
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| Verfasserangaben: | Christopher Kops and Illia Pasichnichenko |
| Zusammenfassung: | The standard Bayesian model implies that information can never have a negative value. We put this implication to the proof. Our paper provides the first test of the value (positive or negative) of information under uncertainty. We show that the "Bayesian implication" stands in conflict with the information-averse behavior that is revealed in our experiment. This behavior demonstrates that the value of truthful and unambiguous information may indeed be negative. Our findings complement predictions from recent theoretical work in showing that negative value of information correlates with ambiguity aversion. This highlights the importance of counseling for decision-making under uncertainty. |
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| Beschreibung: | JEL codes: D81, D83, D90, Keywords: Value of Information, Ambiguity Aversion, Ellsberg paradox, Ellsberg urn |
| Beschreibung: | Online Resource |
| DOI: | 10.11588/heidok.00028244 |