supplied information. Outside of the lab, it is difficult to disentangle the effect of the cost of information itself from the … effect of self-selection by individuals who tend to gain the most from this information. We thus create an environment in the … lab where subjects are offered additional, useful and identical information on the state of the world across treatments …

When an agent receives information from a source whose accuracy might be either high or low, standard theory dictates … uncertain sources. A theory of belief updating where agents are insensitive and averse to uncertainty in information accuracy …

This paper analyzes the effect of information overload on preference or aversion for variety. According to the model, a … rational decision maker who suffers from information overload, faces a two-stage decision process, and is choosing from a set … conducted, and its results, that subjects suffering from information overload use variety aversion as a strategy to deal with …

We report the results of an experiment on selective exposure to information. A decision maker interested in learning … about an uncertain state of the world can acquire information from one of two sources which have opposite biases: when … is better off seeking confirmatory information unless the source biased against the prior is sufficiently more reliable …

In an information cascade experiment participants are confronted with artificial predecessors predicting in line with … coinciding predictions of predecessors are observed, regardless of whether additional information is revealed by these …

optimal conditional on utility functions departing from risk neutrality, or heuristics derived from limited cognitive … standard search task as well as a lottery task designed to elicit utility functions. We find that search heuristics are not …

show that observational learning and information sharing shape consumer choices in markedly different ways. Optimal …

Agents undertaking economic decisions are exposed to an ever-increasing amount of information sources. This paper … investigates how the number of available information sources impacts agents' ability to (i) select reliable sources and (ii) use … guide policy-making decisions, providing evidence on externalities of information production. …

How do individuals value noisy information that guides economic decisions? In our laboratory experiment, we find that … individuals under-react to increasing the informativeness of a signal, thus undervalue high-quality information, and that they … disproportionately prefer information that may yield certainty. Both biases appear to be mainly due to non-standard belief updating. We …