Behavioral Economics Commons^™

Preferences For Information And Ambiguity, Jian Li

Jian Li

This paper studies intrinsic preferences for information and the link between intrinsic information attitudes and ambiguity attitudes in settings with subjective uncertainty. We enrich the standard dynamic choice model in two dimensions. First, we introduce a novel choice domain that allows preferences to be indexed by the intermediate information, modeled as partitions of the underlying state space. Second, conditional on a given information partition, we allow preferences over state-contingent outcomes to depart from expected utility axioms. In particular we accommodate ambiguity sensitive preferences. We show that aversion to partial information is equivalent to a property of static preferences called Event …