Attention and Dread: Experimental Evidence on Preferences for Information

Abstract

Recent models assume that the anticipation of future consumption can have direct utility consequences. This gives rise to preferences over the timing and structure of information. Using a novel and purposefully simple setup, we study the determinants of preferences for sooner versus later information. Our main results are as follows. We find that the majority of subjects prefer receiving information sooner. This preference, however, is not uniform but depends on the context. When the environment allows subjects to not focus attention on (negative) consumption events, later information becomes more attractive. Finally, variations in prior beliefs do not seem to have strong effects on information preferences. This paper was accepted by Marie Claire Villeval, behavioral economics and decision analysis. Funding: This work was funded by the Deutsche Forschungsgemeinschaft [Germany’s Excellence Strategy EXC 2126/1 Grant 390838866 and Grant CRC TR 224 Project A01]. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2023.4975