IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v149y2016icp161-163.html
   My bibliography  Save this article

‘Nudging’ risky decision-making: The causal influence of information order

Author

Listed:
  • Aimone, Jason A.
  • Ball, Sheryl
  • King-Casas, Brooks

Abstract

Recent studies have suggested a correlation between information acquisition and value maximization in risky decision-making. We show that changing how information is acquired can “nudge” agents into riskier decisions, suggesting that choice architecture influences observed risky decisions.

Suggested Citation

  • Aimone, Jason A. & Ball, Sheryl & King-Casas, Brooks, 2016. "‘Nudging’ risky decision-making: The causal influence of information order," Economics Letters, Elsevier, vol. 149(C), pages 161-163.
    • Handle: RePEc:eee:ecolet:v:149:y:2016:i:c:p:161-163
    DOI: 10.1016/j.econlet.2016.10.030
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176516304396
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2016.10.030?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Amos Arieli & Yaniv Ben-Ami & Ariel Rubinstein, 2011. "Tracking Decision Makers under Uncertainty," American Economic Journal: Microeconomics, American Economic Association, vol. 3(4), pages 68-76, November.
    2. Shlomo Benartzi & Richard Thaler, 2007. "Heuristics and Biases in Retirement Savings Behavior," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 81-104, Summer.
    3. David H. Howard, 2007. "Producing Organ Donors," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 25-36, Summer.
    4. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
    5. Elena Reutskaja & Rosemarie Nagel & Colin F. Camerer & Antonio Rangel, 2011. "Search Dynamics in Consumer Choice under Time Pressure: An Eye-Tracking Study," American Economic Review, American Economic Association, vol. 101(2), pages 900-926, April.
    6. Judd B. Kessler & Alvin E. Roth, 2012. "Organ Allocation Policy and the Decision to Donate," American Economic Review, American Economic Association, vol. 102(5), pages 2018-2047, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mark Schneider & Cary Deck & Mikhael Shor & Tibor Besedeš & Sudipta Sarangi, 2019. "Optimizing Choice Architectures," Decision Analysis, INFORMS, vol. 16(1), pages 2-30, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jason A. Aimone & Sheryl Ball & Brooks King-Casas, 2016. ""Nudging" Risky Decision-Making: A Note on the Causal Influence of Information Order," Working Papers e07-52, Virginia Polytechnic Institute and State University, Department of Economics.
    2. Matthew P. Taylor, 2017. "Information Acquisition Under Risky Conditions Across Real And Hypothetical Settings," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 352-367, January.
    3. Olschewski, Sebastian & Diao, Linan & Rieskamp, Jörg, 2021. "Reinforcement learning about asset variability and correlation in repeated portfolio decisions," Journal of Behavioral and Experimental Finance, Elsevier, vol. 32(C).
    4. Königsheim, C. & Lukas, M. & Nöth, M., 2018. "Individual preferences and the exponential growth bias," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 352-369.
    5. Guidon Fenig & Giovanni Gallipoli & Yoram Halevy, 2018. "Piercing the 'Payoff Function' Veil: Tracing Beliefs and Motives," Working Papers tecipa-619, University of Toronto, Department of Economics.
    6. Segovia, Michelle & Palma, Marco & Lusk, Jayson L. & Drichoutis, Andreas, 2022. "Visual formats in risk preference elicitation: What catches the eye?," MPRA Paper 115572, University Library of Munich, Germany.
    7. Fabrice Le Lec & Marianne Lumeau & Benoît Tarroux, 2016. "Choice or information overload ?," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 2016-07, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    8. Jan Hausfeld & Sven Resnjanskij, 2017. "Risky Decisions and the Opportunity Costs of Time," TWI Research Paper Series 108, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    9. Ginger Zhe Jin & Michael Luca & Daniel Martin, 2021. "Is No News (Perceived As) Bad News? An Experimental Investigation of Information Disclosure," American Economic Journal: Microeconomics, American Economic Association, vol. 13(2), pages 141-173, May.
    10. Mark Schneider & Cary Deck & Mikhael Shor & Tibor Besedeš & Sudipta Sarangi, 2019. "Optimizing Choice Architectures," Decision Analysis, INFORMS, vol. 16(1), pages 2-30, March.
    11. Xavier Gabaix, 2017. "Behavioral Inattention," NBER Working Papers 24096, National Bureau of Economic Research, Inc.
    12. Eyting, Markus & Hosemann, Arne & Johannesson, Magnus, 2016. "Can monetary incentives increase organ donations?," Economics Letters, Elsevier, vol. 142(C), pages 56-58.
    13. Deck, Cary & Kimbrough, Erik O., 2013. "Do market incentives crowd out charitable giving?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 16-24.
    14. Bateman, Hazel & Dobrescu, Loretti I. & Newell, Ben R. & Ortmann, Andreas & Thorp, Susan, 2016. "As easy as pie: How retirement savers use prescribed investment disclosures," Journal of Economic Behavior & Organization, Elsevier, vol. 121(C), pages 60-76.
    15. Luigi Mittone & Mauro Papi, 2017. "Does inducing choice procedures make individuals better off? An experimental study," Theory and Decision, Springer, vol. 83(1), pages 37-59, June.
    16. Caliari, Daniele, 2023. "Behavioural welfare analysis and revealed preference: Theory and experimental evidence," Discussion Papers, Research Unit: Economics of Change SP II 2023-303, WZB Berlin Social Science Center.
    17. Polonio, Luca & Di Guida, Sibilla & Coricelli, Giorgio, 2015. "Strategic sophistication and attention in games: An eye-tracking study," Games and Economic Behavior, Elsevier, vol. 94(C), pages 80-96.
    18. Ryan Webb, 2019. "The (Neural) Dynamics of Stochastic Choice," Management Science, INFORMS, vol. 65(1), pages 230-255, January.
    19. Konstantinos Georgalos & Nathan Nabil, 2023. "Heuristics Unveiled," Working Papers 400814162, Lancaster University Management School, Economics Department.
    20. Martin G. Kocher & Julius Pahlke & Stefan T. Trautmann, 2013. "Tempus Fugit : Time Pressure in Risky Decisions," Management Science, INFORMS, vol. 59(10), pages 2380-2391, October.

    More about this item

    Keywords

    Risky decision making; Expected value maximization; Nudging; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:149:y:2016:i:c:p:161-163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.