eprintid: 28244
rev_number: 20
eprint_status: archive
userid: 3114
dir: disk0/00/02/82/44
datestamp: 2020-04-17 10:06:10
lastmod: 2020-04-27 14:55:06
status_changed: 2020-04-17 10:06:10
type: workingPaper
metadata_visibility: show
creators_name: Kops, Christopher
creators_name: Pasichnichenko, Illia
title: A Test of Information Aversion
subjects: 330
divisions: 181000
keywords: value of Information, ambiguity aversion, Ellsberg paradox, Ellsberg urn
abstract: 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
id_scheme: DOI
id_number: 10.11588/heidok.00028244
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0682
ppn_swb: 1695844114
own_urn: urn:nbn:de:bsz:16-heidok-282444
language: eng
bibsort: KOPSCHRISTATESTOFINF202004
full_text_status: public
series: Discussion Paper Series / University of Heidelberg, Department of Economics
volume: 0682
place_of_pub: Heidelberg
pages: 28
citation:   Kops, Christopher ; Pasichnichenko, Illia  (2020) A Test of Information Aversion.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/28244/7/Kops_2020_dp682.pdf