Information Acquisition Behavior Research Articles

Localized Information Acquisition

his study identifies previously undocumented geography-related diversity in investors’ information acquisition behavior around days with earnings announcements. IP geo-localization of the server log of the SEC’s EDGAR (Electronic Data Gathering, Analysis, and Retrieval) system shows that, around these days, local (non-local) investors’ information acquisition behavior is largely anticipatory (reactionary) in nature. Specifically, local investors are found to sharply increase their information acquisition activities on days leading up to earnings announcements, triggered by intertemporal changes in a firm’s earnings uncertainty and varying predictably with exogenous firm relocation. Their non-local counterparts, on the other hand, generally hold off until the day of the earnings announcement, when new filings information becomes available. Greater pre-announcement information acquisition diversity is predicted to elicit stronger stock price reactions on earnings announcement days. Consistent with this prediction, we find that the earnings announcement-day premium is higher when pre-announcement information acquisition by local investors is higher, controlling for time-variant and -invariant firm characteristics.

Local Warming Increases Climate Policy Support: Analysis of Behavioral Intentions, Internet Searches, and US Congressional Vote Shares

We report on four studies that examine the effects of abnormal temperature experiences on climate policy support. Study 1 shows perceived weather abnormality to be correlated with self-reported climate policy support, an effect that is robust across USA, Italy, and China but strongest in the USA. Study 2 identifies a significant effect of objective temperature abnormality on climate policy support in a large US sample. Study 3 analyzes the impacts of objective temperature abnormality on information acquisition behavior, namely Google searches about climate change and climate policies, finding strong evidence that weather abnormalities increase such searches. Lastly, Study 4 analyzes a high-effort and highly consequential behavioral outcome, voting for candidates who support climate policies, showing that experienced temperature abnormalities significantly decreased Republican candidates’ vote shares in the 2018 US midterm elections.

Breaking the Silence: Secret and Overt Information Acquisition in Financial Markets

We develop a model to study the observability of investors’ information acquisition in financial markets. Relative to observable information acquisition, unobservable information acquisition leads to more information production if and only if the ratio of the information-acquisition cost to noise trading is relatively high. This information-production result has further consequences for market quality. Different information-acquisition models can generate qualitatively different results. When investors endogenously choose the observability of their information-acquisition behavior, their equilibrium choices always feature a prisoner's dilemma. Our analysis has implications for regulations on investors’ private meetings with company management and the practice of tracing investors’ digital footprints.

Information Acquisition and Trading Behavior: Moderating Role of Demographic Factors

Behavior of investor is very important during investment which is the component of behavioral finance. Information acquisitions play an important role in trading behavior of investors. For this reason, present research is going to examine the impact of information acquisition on trading behavior of investors in presence of demographics as moderator. The results show positive and significant relation not only among the information acquisition and trading behavior of investors but also among all the dimensions of information acquisition. Moreover the outcome also proved that demographic factors moderate the relationship between the information acquisition and trading behavior. Present research is beneficial for investors which continually gather information and then take decision for investment. Keywords: Behavioral finance, Information acquisition, Trading behavior, Investors, Demographic factors. DOI : 10.7176/HRL/48-02

Patient-Centered Communication Mediates the Relationship between Health Information Acquisition and Patient Trust in Physicians: A Five-Year Comparison in China

ABSTRACT Public trust in medical profession has declined in the past decades. The deluge of health information available in various sources may be one contributing factor. However, how the health information acquisition influences patient trust remains unclear. With a general basis of Longo’s Health Information Model, we proposed and tested mediation pathways linking three types of health information acquisition behaviors (scanning, seeking, and discussing) to patient trust in physicians, mediated by patient-centered communication. By using two iterations of probability sample surveys conducted in 2012 (N = 2568) and 2017 (N = 3090), respectively, in China, this study found that from 2012 to 2017, health information scanning declined. Specifically, the scanning via traditional media (e.g., newspaper, tv) decreased, but increased in the new media (e.g., Web). Besides, both health information seeking and discussing slumped. Among the three dimensions of health information acquisition, health information scanning and discussing exerted direct effects on patient trust. However, patient-centered communication was found to be mediated the relationships between all three types of health information acquisition and patient trust in physicians over time.

What drives discretion in bank lending? Some evidence and a link to private information

We assess the extent to which discretion, unexplained variations in the terms of a loan contract, has varied across time and lending institutions and show that part of this discretion is due to private information that lenders have on their borrowers. We find that discretion is lower for secured loans and loans granted by a larger group of lenders, and is larger when the lenders are larger and more profitable. Over time, discretion is also lower around recessions although the private information content is higher. The results suggest that bank discretionary and private information acquisition behavior may be important features of the credit cycle.

Information Acquisition and Trading Behavior: Moderating Role of Demographic Factors

Information Acquisition and Trading Behavior: Moderating Role of Demographic Factors

Voluntary information acquisition in an asymmetric-Information game:comparing learning theories in the laboratory

This paper uses an experimental design of voluntary information acquisition to assess the information assumptions of different learning models. The design is implemented in two-stage asymmetric-information games. Subjects’ information-seeking behavior reveals that they tend to choose certain information sets that are consistent with belief-based learning theories rather than reinforcement theories. A hybrid-learning model with information acquisition that is a variant of the Generalized Experience-Weighted-Attraction (GEWA) model (Shafran, 2012) is also proposed. It successfully captures the different learning speeds of two groups of subjects (i.e., informed and uninformed subjects), and shows that once information acquisition data is added into a structural model that focuses on action data alone, the performance is enhanced. Additional individual analysis indicates that the information acquisition behavior assumed by learning models appears to suggest the learning rule subjects follow. The results suggest that tracking subjects’ voluntary information choices is a useful tool for analyzing their learning behaviors.

Information Acquisition Differences between Experienced and Novice Time Trial Cyclists.

To use eye-tracking technology to directly compare information acquisition behavior of experienced and novice cyclists during a self-paced, 10-mile (16.1 km) time trial (TT). Two groups of novice (n = 10) and experienced cyclists (n = 10) performed a 10-mile self-paced TT on two separate occasions during which a number of feedback variables (speed, distance, power output, cadence, HR, and time) were projected within their view. A large RPE scale was also presented next to the projected information and participants. Participants were fitted with a head-mounted eye tracker and HR monitor. Experienced cyclists performed both TT quicker than novices (F1,18 = 6.8, P = 0.018) during which they primarily looked at speed (9 of 10 participants), whereas novices primarily looked at distance (6 of 10 participants). Experienced cyclists looked at primary information for longer than novices across the whole TT (24.5% ± 4.2% vs 34.2% ± 6.1%; t18 = 4.2; P < 0.001) and less frequently than novices during the last quarter of the TT (49 ± 19 vs 80 ± 32; t18 = -2.6; P = 0.009). The most common combination of primary and secondary information looked at by experienced cyclists was speed and distance, respectively. Looking at 10 different primary-secondary feedback permutations, the novices were less consistent than the experienced cyclists in their information acquisition behavior. This study challenges the importance placed on knowledge of the endpoint to pacing in previous models, especially for experienced cyclists for whom distance feedback was looked at secondary to, but in conjunction with, information about speed. Novice cyclists have a greater dependence on distance feedback, which they look at for shorter and more frequent periods than the experienced cyclists. Experienced cyclists are more selective and consistent in attention to feedback during TT cycling.

Information Acquisition Behavior: An Evolutionary Game Theory Perspective

This paper explores the retailers’ information acquisition behavior under horizontal competition and investigates the impact of information leakage from an evolutionary game theory perspective. When information leakage does not occur, we find that firms’ acquisition behavior differ under different types of competition. Under Cournot competition, rivals prefer the competitor not to acquire information. Under Bertrand competition, however, rivals prefer the competitor to acquire information. As a result, at a moderate level of acquisition cost mixed strategies (acquire and not acquire) coexist under Cournot competition, whereas all retailers adopt the same (pure) strategy under Bertrand competition. With information leakage, two effects (collaborative forecasting and free-riding) influence firms’ decision making. When the collaborative forecasting effect dominates, all retailers would choose the acquisition strategy in the equilibrium. However, if the free-riding effect is strong, no retailer would acquire information in the equilibrium. With a moderate acquisition cost, there are still retailers willing to acquire information and mixed strategies coexist, regardless of the type of competition. Interestingly, no matter information is leaked or not, we find that Cournot competition in general better accommodates information acquisition than Bertrand competition. As a result, Cournot competition can lead to a higher total welfare than Bertrand competition when the information acquisition cost is moderate and the demand uncertainty is large, in contrast to the standard result of duopoly models.

Stem cell research: the role of information seeking and scanning.

The mass media have held an ongoing debate about stem cell research. However, few studies have investigated how individuals obtain information on stem cell research and whether this affects their knowledge and perspectives on stem cell research. This study aims to investigate whether (i) cancer-diagnosed and non-diagnosed individuals differ in terms of their acquisition of stem cell research information, (ii) whether this information acquisition is associated with stem cell research knowledge and perspectives and (iii) whether having had a cancer diagnosis moderates these associations. A standardised, cross-sectional survey was conducted among a convenience sample of 621 cancer-diagnosed and 1387 non-diagnosed individuals in Flanders (Belgium). The results indicate that stem cell research information acquisition explains a significant part of the variance of stem cell research knowledge (8.9%) and of the societal benefits of stem cell research (6.7%) and of embryonic stem cell research evaluation (3.9%) and morality (2%). These associations did not differ between cancer-diagnosed and non-diagnosed individuals but cancer-diagnosed individuals did seek more stem cell research information. Acquiring stem cell research information, both intentionally and unintentionally, is positively related to stem cell research knowledge and perspectives. Future research should further identify ways to promote health information acquisition behaviour because it is associated with better knowledge and more positive opinion formation.

An optimal sequential information acquisition model subject to a heuristic assimilation constraint

Purpose – The purpose of this paper is to study the optimal sequential information acquisition process of a rational decision maker (DM) when allowed to acquire n pieces of information from a set of bi-dimensional products whose characteristics vary in a continuum set. Design/methodology/approach – The authors incorporate a heuristic mechanism that makes the n-observation scenario faced by a DM tractable. This heuristic allows the DM to assimilate substantial amounts of information and define an acquisition strategy within a coherent analytical framework. Numerical simulations are introduced to illustrate the main results obtained. Findings – The information acquisition behavior modeled in this paper corresponds to that of a perfectly rational DM, i.e. endowed with complete and transitive preferences, whose objective is to choose optimally among the products available subject to a heuristic assimilation constraint. The current paper opens the way for additional research on heuristic information acquisition and choice processes when considered from a satisficing perspective that accounts for cognitive limits in the information processing capacities of DMs. Originality/value – The proposed information acquisition algorithm does not allow for the use of standard dynamic programming techniques. That is, after each observation is gathered, a rational DM must modify his information acquisition strategy and recalculate his or her expected payoffs in terms of the observations already acquired and the information still to be gathered.

Loyal customer bases as innovation disincentives for duopolistic firms using strategic signaling and Bayesian analysis

In this paper we model the strategic behavior of firms competing in duopolistic environments with a loyal customer base and formalize their decision to delay the introduction of the most technologically developed product available. The proposed model extends and complements the partial approaches studied in the economic, management and operations research literatures. The former emphasizes the role of the strategic knowledge spillovers that may take place among competing firms because of their incentives to introduce technologically superior products while assuming the acceptance of such products by customers as given. The second defines its technology acceptance model based on the demand side of the economic system without considering the resulting strategic interactions that arise among the firms. The latter addresses the effect that signals about a new technology have on the information acquisition behavior of decision makers (DMs) but does not consider the capacity of DMs to account for several product characteristics and their interaction when acquiring information. Using a duopolistic innovation game model we illustrate how the existence of loyal customer bases allows for higher expected payoffs when generating monopolized markets but decreases the incentives of firms to introduce the most technologically developed product available. The signaling equilibria of the game are determined by demand-based factors and the incentives of customers to acquire information on the existing products in the market. Among the main implications of our model is also the fact that the availability of decision support systems that can be used by DMs through their information acquisition processes would improve the quality of the technology being introduced in the market and increase the firms’ probability of success.

Media and User Features that Affect Knowledge Sharing Intention and Knowledge Sharing Behaviors on Wechat

Objectives: This study aims to shed light on the factors that influence mobile social networking applications (Wechat) users' intention and behaviors to share knowledge from the perspective of both media and psychological features. Methods/Statistical analysis: This research conducted questionnaire survey via online survey company (Wenjuanxing) and 197 samples were collected. Based on the data collected, research model and hypotheses were tested using smart pls 2.0. Internal consistency, convergent validity and discriminant validity were examined that were required in Partial Least Squares (PLS) analysis. Findings: The analytical results of this research show that media features-mobility and interactivity is insignificantly related with the Wechat users' intention to share knowledge. Users' psychological featuresaltruism, sense of self-worth and knowledge self-efficacy were found significantly related with users' Knowledge Sharing Intention (KSI) and Knowledge Sharing Behaviors (KSB). This research empirically examined users' psychological features which were found to be the main factors that drive individuals to participate in the knowledge sharing activities on mobile devices. These findings are particularly significant by having a deep insight into individual’s knowledge sharing activities from the perspectives of both media and users' psychological features in the mobile internet era. The results of this research are believed to contribute to the future research on people's new knowledge acquisition patterns. Application/Improvements: The results of this study will provide great benefits to companies or educational institutions with evidences of individual of their information acquisition behaviors in today's mobile internet era.

Modeling Sequential Information Acquisition Behavior in Rational Decision Making

ABSTRACTMost real‐life decisions are made with less than perfect information and there is often some opportunity to acquire additional information to increase the quality of the decision. In this article, we define and study the sequential information acquisition process of a rational decision maker (DM) when allowed to acquire any finite amount of information from a set of products defined by vectors of characteristics. The information acquisition process of the DM depends both on the values of the characteristics observed previously and the number and potential realizations of the remaining characteristics. Each time an observation is acquired, the DM modifies the probability of improving upon the products already observed with the number of observations available. We construct two real‐valued functions whose crossing points determine the decision of how to allocate each available piece of information. We provide several numerical simulations to illustrate the information acquisition incentives defining the behavior of the DM. Applications to knowledge management and decision support systems follow immediately from our results, particularly when considering the introduction and acceptance of new technological products and when formalizing online search environments.

Modeling signal-based decisions in online search environments: A non-recursive forward-looking approach

Consider a rational decision maker (DM) who must acquire a finite amount of information sequentially online from a set of products. The DM receives signals on the distribution of the product characteristics. Each time an observation is acquired, DMs redefine the probability of improving upon the products observed. The resulting information acquisition process depends on the values of the characteristics observed, the number and potential realizations of the remaining observations, and the type of signal received. We construct two functions determining the information acquisition behavior of DMs and illustrate numerically the importance of the characteristic on which signals are issued.

Why do not you read the label? – an integrated framework of consumer label information search

AbstractThis article facilitates deeper insight into label‐related consumer information acquisition behaviour. An integrated framework of label information search (LIS) has been developed based on a synthesis of related literature and explorative research conducted by analysing online discussions among customers (netnography). The framework focuses on three main groups of personal factors that serve as antecedents of LIS: general personal factors (e.g. health consciousness and socio‐demographics), label‐related personal factors (e.g. label‐related self‐efficacy, trust in labels and the perceived usefulness of labels) and product category‐related personal factors (trust in food products, enduring involvement, experience and perceived quality differences). Important characteristics of the framework are its process‐oriented nature and the dynamically changing relationships among its concepts. LIS is an antecedent to and a consequence of influencing factors. This article offers managerial implications and serves to incite future inquiry in this field.

The Information Content and Investor Reaction to SEC Disclosures by Foreign Firms

SEC rules only obligate US-listed foreign firms to supply ongoing disclosures via SEC Form 6-K if it is mandated by their home country exchange or laws. Heterogeneity in transparency and reporting requirements across countries yields significant variation in the discretion firms have to publicly supply information. We show that foreign firms from weaker reporting regimes, and those whose shares trade exclusively on a US exchange, experience greater investor interest and larger market reactions around these filings, but these firms provide significantly fewer disclosures. Moreover, firms supplying more 6-Ks exhibit lower residual uncertainty when reporting annual earnings and have lower overall information asymmetry. Our paper highlights that listing in the US does not subject foreign firms to strict regulatory Our paper highlights that listing in the US does not subject foreign firms to strict regulatory disclosure requirements, but evidence on investor information acquisition and trading behavior suggests market-based incentives encourage firms to provide timely and value-relevant information flows.

Determinants of Destination Knowledge Acquisition in Religious Tourism: Perspective of Umrah Travelers

Religious travel has grown consistently with the growth of the tourism industry worldwide. However, some of the religious based tourism particularly pilgrimage tourism such as Umrah received little attention in the literature although there are 6 million people performing it each year. Thus, this study aims to examine the relationship between the factors influencing information acquisition behavior to gain destination product knowledge in performing Umrah. Survey data from 198 Umrah travelers were analyzed using Partial least squares (PLS) structural equation. The final useful sample consisted of 198 Muslim participants who had travelled to Mecca for Umrah in the last 12 months. Partial least squares (PLS) structural equation was used in data analysis. The results show that the determinants of information search, the purpose of travelling, past experience, quality of information and travel companion affect information acquisition behavior and destination product knowledge. The findings of this study will aid tour operators and travel agents in developing relevant strategies for future business development.

Advertising value and credibility transfer: attitude towards web advertising and online information acquisition

China is undergoing a transition from offline to online advertising, but little is known about the causal relationship regarding credibility transfer from non-web advertising to web advertising. Meanwhile, web advertising usage behaviour is largely overlooked. The purpose of this study is to explore the formation of customers' attitude towards web advertising (ATT) which further impacts their online information acquisition behaviour, from the perspectives of advertising value and credibility transfer. This paper develops a research model drawing upon advertising value, credibility transfer, ATT and tie. Data collected from Chinese online shopping customers were used to test the model. The results indicate that perceived informativeness, perceived entertainment and credibility contribute to the formation of ATT, which further impacts web advertising usage for getting information. Meanwhile, tie positively moderates the credibility transfer from non-web advertising to web advertising. These findings and their implications for theory and practice are discussed.