Type
Article
Title
Preferences for observable information in a strategic setting: An experiment
In
Journal of Economic Behavior and Organization
Author(s)
ZYLBERSZTEJN Adam - (Author)
BABUTSIDZE Zakaria - Observatoire français des conjonctures économiques (Author)
HANAKI Nobuyuki - Université Côte d'Azur (UCA) (Author)
Editor
NL : Elsevier B.V.
Volume
170
Pages
268 - 285 p.
ISSN
01672681
Keywords
Prediction, Observable information, Individual characteristics, Stated preferences, Willingness to accept, Experiment
Abstract
EN
We experimentally investigate how much value people put in observable information about others in strategic interactions. The incentivized experimental task is to predict an unknown target player’s trustworthiness in an earlier hidden action game. In Experiment 1, we vary the source of information about the target player (neutral picture, neutral video, video containing strategic content). The observed prediction accuracy rates then serve as an empirical measure of the objective value of information. In Experiment 2, we elicit the subjective value of information using the standard stated preferences method (“willing- ness to accept”). While the elicited subjective values are ranked in the same manner as the objective ones, subjects attach value to information which does not help predict target behavior, and exaggerate the value of helpful information.

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