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INFORMATION ACQUISITION UNDER RISKY CONDITIONS ACROSS REAL AND HYPOTHETICAL SETTINGS
Author(s) -
Taylor Matthew P.
Publication year - 2017
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/ecin.12386
Subject(s) - completeness (order theory) , tracing , computer science , expected utility hypothesis , process tracing , software , process (computing) , econometrics , actuarial science , economics , mathematics , mathematical economics , mathematical analysis , politics , political science , law , programming language , operating system
I collect data on how subjects acquire information about risky choices in both real and hypothetical settings using process‐tracing software called Mouselab. On average, there are no significant differences across settings in the amount of time subjects take to make a choice or the completeness of the information they acquire. Subjects also acquire information in sequences consistent with an integration model of decision‐making, such as expected utility theory or prospect theory. I do not find significant differences in risk preferences across settings, on average, but I do find that subjects' risk preferences are related to the completeness of the information that they acquire and where they start their information acquisition. ( JEL C91, D80, D83)