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Intrinsic Information Preferences and Skewness

Author

Listed:
  • Yusufcan Masatlioglu
  • Yeşim Orhun
  • Collin Raymond

Abstract

We examine whether people have an intrinsic preference for negatively skewed or positively skewed information structures and how these preferences relate to intrinsic preferences for informativeness. The results from lab experiments show a strong intrinsic preference for positively skewed information and suggest that providing such information can improve information uptake. Evidence from field studies in decision- and ego-relevant contexts replicates these findings. We discuss our findings through the lens of existing theories and the potential trade-offs in information provision policies.

Suggested Citation

  • Yusufcan Masatlioglu & Yeşim Orhun & Collin Raymond, 2023. "Intrinsic Information Preferences and Skewness," American Economic Review, American Economic Association, vol. 113(10), pages 2615-2644, October.
    • Handle: RePEc:aea:aecrev:v:113:y:2023:i:10:p:2615-44
    DOI: 10.1257/aer.20171474
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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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