Can anticipatory feelings explain anomalous choices of information sources?
AbstractThe well-being of agents is often directly affected by their beliefs, in the form of anticipatory feelings such as anxiety and hopefulness. Economists have tried to model this effect by introducing beliefs as arguments in decision makers' vNM utility function. One might expect that such a model would be capable of explaining anomalous attitudes to information that we observe in reality. We show that the model has several shortcomings in this regard, as long as Bayesian updating is retained. (c) 2005 Elsevier Inc. All rights reserved.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 56 (2006)
Issue (Month): 1 (July)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622836
Other versions of this item:
- Eliaz, K & Spiegler, R, 2006. "Can anticipatory feelings explain anomalous choices of information sources?," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David M Kreps & Evan L Porteus, 1978.
"Temporal Resolution of Uncertainty and Dynamic Choice Theory,"
Levine's Working Paper Archive
625018000000000009, David K. Levine.
- Kreps, David M & Porteus, Evan L, 1978. "Temporal Resolution of Uncertainty and Dynamic Choice Theory," Econometrica, Econometric Society, vol. 46(1), pages 185-200, January.
- Akerlof, George A & Dickens, William T, 1982. "The Economic Consequences of Cognitive Dissonance," American Economic Review, American Economic Association, vol. 72(3), pages 307-19, June.
- Safra, Zvi & Sulganik, Eyal, 1995. "On the Nonexistence of Blackwell's Theorem-Type Results with General Preference Relations," Journal of Risk and Uncertainty, Springer, vol. 10(3), pages 187-201, May.
- Jonathan Parker & Markus K Brunnermeier, 2002.
FMG Discussion Papers
dp434, Financial Markets Group.
- Markus K. Brunnermeier & Jonathan A. Parker, 2004. "Optimal Expectations," NBER Working Papers 10707, National Bureau of Economic Research, Inc.
- Jonathan A. Parker & Markus K. Brunnermeier, 2004. "Optimal Expectations," Econometric Society 2004 North American Winter Meetings 426, Econometric Society.
- Brunnermeier, Markus K & Parker, Jonathan A, 2004. "Optimal Expectation," CEPR Discussion Papers 4656, C.E.P.R. Discussion Papers.
- Carrillo, Juan D & Mariotti, Thomas, 2000. "Strategic Ignorance as a Self-Disciplining Device," Review of Economic Studies, Wiley Blackwell, vol. 67(3), pages 529-44, July.
- Caplin, A. & Leahy, J., 1999.
"The Supply of Information by a Concerned Expert,"
99-08, C.V. Starr Center for Applied Economics, New York University.
- Geanakoplos, John & Pearce, David & Stacchetti, Ennio, 1989. "Psychological games and sequential rationality," Games and Economic Behavior, Elsevier, vol. 1(1), pages 60-79, March.
- repec:pri:wwseco:146 is not listed on IDEAS
- Koszegi, Botond, 2003. "Health anxiety and patient behavior," Journal of Health Economics, Elsevier, vol. 22(6), pages 1073-1084, November.
- Caplin, Andrew & Eliaz, Kfir, 2003. " AIDS Policy and Psychology: A Mechanism-Design Approach," RAND Journal of Economics, The RAND Corporation, vol. 34(4), pages 631-46, Winter.
- Larry G. Epstein, 2007.
"Living with risk,"
RCER Working Papers
534, University of Rochester - Center for Economic Research (RCER).
- F. Barigozzi & R. Levaggi, 2009.
"Emotional Decision-Makers and Anomalous Attitudes towards Information,"
656, Dipartimento Scienze Economiche, Universita' di Bologna.
- Francesca Barigozzi & Rosella Levaggi, 2010. "Emotional decision-makers and anomalous attitudes towards information," Journal of Risk and Uncertainty, Springer, vol. 40(3), pages 255-280, June.
- Francesca Barigozzi & Rosella Levaggi, 2008. "Emotional Decision-Makers and Anomalous Attitudes towards Information," CHILD Working Papers wp02_09, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- Botond Kőszegi, 2010. "Utility from anticipation and personal equilibrium," Economic Theory, Springer, vol. 44(3), pages 415-444, September.
- Argentesi, Elena & Lütkepohl, Helmut & Motta, Massimo, 2006.
"Acquisition of Information and Share Prices: An Empirical Investigation of Cognitive Dissonance,"
CEPR Discussion Papers
5912, C.E.P.R. Discussion Papers.
- Elena Argentesi & Helmut Lütkepohl & Massimo Motta, 2010. "Acquisition of Information and Share Prices: An Empirical Investigation of Cognitive Dissonance," German Economic Review, Verein für Socialpolitik, vol. 11, pages 381-396, 08.
- Elena Argentese & Helmut Luetkepohl & Massimo Motta, 2006. "Acquisition of information and share prices: An empirical investigation of cognitive dissonance," Economics Working Papers ECO2006/32, European University Institute.
- F. Barigozzi & R. Levaggi, 2006. "A Rationale for Searching (Imprecise) Health Information," Working Papers 559, Dipartimento Scienze Economiche, Universita' di Bologna.
- Easaw, Joshy & Ghoshray, Atanu, 2010. "News and households' subjective macroeconomic expectations," Journal of Macroeconomics, Elsevier, vol. 32(1), pages 469-475, March.
- Benabou, Roland, 2013.
"Groupthink: Collective Delusions in Organizations and Markets,"
IZA Discussion Papers
7322, Institute for the Study of Labor (IZA).
- Bénabou, Roland, 2009. "Groupthink: Collective Delusions in Organizations and Markets," CEPR Discussion Papers 7193, C.E.P.R. Discussion Papers.
- Roland Bénabou, 2009. "Groupthink: Collective Delusions in Organizations and Markets," NBER Working Papers 14764, National Bureau of Economic Research, Inc.
- Si Chen, 2013.
"Optimistic versus Pessimistic--Optimal Judgemental Bias with Reference Point,"
- Chen, Si, 2012. "Optimistic versus Pessimistic--Optimal Judgemental Bias with Reference Point," MPRA Paper 50693, University Library of Munich, Germany.
- Azrieli, Yaron & Lehrer, Ehud, 2008.
"The value of a stochastic information structure,"
Games and Economic Behavior,
Elsevier, vol. 63(2), pages 679-693, July.
- Eliaz, Kfir & Schotter, Andrew, 2009.
"Paying for Confidence: An Experimental Study of the Demand for Non-Instrumental Information,"
CEPR Discussion Papers
7415, C.E.P.R. Discussion Papers.
- Eliaz, Kfir & Schotter, Andrew, 2010. "Paying for confidence: An experimental study of the demand for non-instrumental information," Games and Economic Behavior, Elsevier, vol. 70(2), pages 304-324, November.
- Joshy Easaw, 2010. "It’s all ‘bad’ news! Voters’ perception of macroeconomic policy competence," Public Choice, Springer, vol. 145(1), pages 253-264, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If references are entirely missing, you can add them using this form.