The paper examines the economic role of modelling information on the decision problem of an exporting firm under … exchange rate risk and hedging. Information is described in terms of market transparency, i.e., a publicly observable signal … conveys more information about the random foreign exchange rate. We analyze the interaction between market transparency and …

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 …

In the spirit of von Neumann and Morgenstern (1947), this paper provides an axiomatic representation of information … Blackwell informativeness axiom, I show that any ordering over information can be essentially uniquely represented as …, equivalently: (a) a strictly increasing cost of information acquisition; (b) for a given prior, the expected utility from a …

We propose and experimentally test a new theory of information seeking and avoidance. Beyond the conventional desire … for information as an input to decision making, people are driven by curiosity, which is a desire to fill information gaps …, even in the absence of material benefits. People are additionally motivated to seek out information about issues they like …

In "Marketing Information: A Competitive Analysis,'' Sarvary and Parker (1997) (S&P) [Marketing Science, 16(1): 24 …-38] argue that, a reduction in the price of one information product can lead to an increase in demand for another information … product -- information products can be gross complements -- if they are sufficiently unreliable. We show that S&P obtain this …

In "Marketing Information: A Competitive Analysis,'' Sarvary and Parker (1997) (S&P) [Marketing Science, 16(1): 24 …-38] argue that in part of the parameter space that they considered, a reduction in the price of one information product can lead … to an increase in demand for another information product, i.e., information products can be gross complements. This …

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 …

We use a laboratory experiment to study how mutual payoff information affects play in strategic settings. Subjects play … the Prisoner's Dilemma or Stag Hunt game against randomly re-matched opponents under two information treatments. In our … partial-information treatment subjects are shown only their own payoffs, while in our full-information treatment they are …

Acquiring information about destinations can be costly for migrants. We model information frictions in the rational … predicts that ows from countries with a higher cost of information or stronger priors are less responsive to variations in … economic conditions at destination, as migrants rationally get less information before deciding where to move. The econometric …

: that new information leads to new knowledge and that new knowledge can affect economic decisions. In the experiment, we … elicit subjects’ prior knowledge state about a good’s attributes, exogenously vary how much new information about good …