Information Avoidance

2017/03/01 by Russell Golman, David Hagmann, George Loewenstein · 44 citations
Social Sciences · Decision Sciences · #Experimental Behavioral Economics Studies #Decision-Making and Behavioral Economics #Game Theory and Applications

paper · pdf · doi:10.1257/jel.20151245

Abstract

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 function. This can create an incentive to avoid information, even when it is useful, free, and independent of strategic considerations. We review research documenting the occurrence of information avoidance, as well as theoretical and empirical research on reasons why people avoid information, drawing from economics, psychology, and other disciplines. The review concludes with a discussion of some of the diverse (and often costly) individual and societal consequences of information avoidance. (JEL D82, D83)

Citations

• Regret Theory: An Alternative Theory of Rational Choice Under Uncertainty
• Confirmation Bias: A Ubiquitous Phenomenon in Many Guises
• Temporal Resolution of Uncertainty and Dynamic Choice Theory
• What Drives Media Slant? Evidence From U.S. Daily Newspapers
• Optimal Expectations

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