Ulric B. and Evelyn L. Bray Social Sciences Seminar

Abstract: We present results from a laboratory experiment designed to identify preferences over the resolution of uncertainty and timing of non-instrumental information acquisition in a rich choice set. We test theoretical predictions along three dimensions: early vs. late resolution, one-shot vs. gradual, and positive vs. negative skew. Treatments vary whether the outcome previously has been determined, as in an information structure, or is determined later, as in a compound lottery. We find that individuals prefer to delay uncertainty resolution when the outcome has not been determined and prefer to expedite uncertainty resolution when the outcome has already occurred. We find no evidence of an aversion to gradual resolution in either context.