title: A Test of Information Aversion
creator: Kops, Christopher
creator: Pasichnichenko, Illia
subject: 330
subject: 330 Economics
description: 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.
date: 2020-04
type: Working paper
type: info:eu-repo/semantics/workingPaper
type: NonPeerReviewed
format: application/pdf
identifier: https://archiv.ub.uni-heidelberg.de/volltextserverhttps://archiv.ub.uni-heidelberg.de/volltextserver/28244/7/Kops_2020_dp682.pdf
identifier: DOI:10.11588/heidok.00028244
identifier: urn:nbn:de:bsz:16-heidok-282444
identifier:   Kops, Christopher ; Pasichnichenko, Illia  (2020) A Test of Information Aversion.  [Working paper]     
relation: https://archiv.ub.uni-heidelberg.de/volltextserver/28244/
rights: info:eu-repo/semantics/openAccess
rights: http://archiv.ub.uni-heidelberg.de/volltextserver/help/license_urhg.html
language: eng