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Intrinsic preferences for unhappy news

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  • Lane, Tom

Abstract

In ordinary life, many types of situation occur in which a better-informed agent faces a decision over whether to reveal some bad news to an uninformed counterpart. This paper reports an experiment designed to explore how, in such contexts, the decisions of informed individuals are shaped by intrinsic preferences over information. Impartial spectators are tasked with deciding whether to make initially uninformed subjects aware that their actions have inadvertently generated negative externalities. Knowledge of this consequence is materially useless and reduces the subjective happiness of the externality-generating subjects, as is anticipated by the vast majority of spectators. However, 72% of spectators still choose to reveal the information. This suggests the existence of intrinsic preferences for information possession which are not based on hedonic considerations and indeed are sufficiently strong as to trump spectators’ concerns about the negative hedonic consequences of revelation. However, the hedonic impact of information is not completely overlooked, as spectators are less likely to reveal information the more strongly they believe it will damage the recipient's happiness.

Suggested Citation

  • Lane, Tom, 2022. "Intrinsic preferences for unhappy news," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 119-130.
    • Handle: RePEc:eee:jeborg:v:202:y:2022:i:c:p:119-130
    DOI: 10.1016/j.jebo.2022.08.006
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    1. Jantsje M. Mol & Ivan Soraperra & Joël J. van der Weele, 2023. "Spoiling the party. Experimental evidence on the willingness to transmit inconvenient ethical information," Tinbergen Institute Discussion Papers 23-062/I, Tinbergen Institute.

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    More about this item

    Keywords

    Information; Spectator experiment; Happiness; Intrinsic preferences;
    All these keywords.

    JEL classification:

    • 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
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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