Abstract

http://ssrn.com/abstract=2370983
 


 



Fantasy and Dread: The Demand for Information and the Consumption Utility of the Future


Ananda R. Ganguly


Claremont McKenna College - Robert Day School of Economics and Finance

Joshua Tasoff


Claremont Colleges - Claremont Graduate University

May 28, 2014

Claremont McKenna College Robert Day School of Economics and Finance Research Paper

Abstract:     
Understanding the properties of intrinsic information preference is important for predicting behavior in many domains including finance and health. We present evidence that intrinsic demand for information about the future is increasing in expected future consumption utility. In the first experiment subjects may resolve a lottery now or later. The information is useless for decision making but the larger the reward, the more likely subjects are to pay to resolve the lottery early. In the second experiment subjects may pay to avoid being tested for HSV-1 and the more highly feared HSV-2. Subjects are three times more likely to avoid testing for HSV-2, suggesting that more aversive outcomes lead to more information avoidance. We also find that intrinsic information demand is negatively correlated with positive affect and ambiguity aversion.

Number of Pages in PDF File: 49

Keywords: anticipatory utility, information avoidance, positive affect, information-consumption complementarity, preference for presence

JEL Classification: D10, D83, I12

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Date posted: December 23, 2013 ; Last revised: May 29, 2014

Suggested Citation

Ganguly, Ananda R. and Tasoff, Joshua, Fantasy and Dread: The Demand for Information and the Consumption Utility of the Future (May 28, 2014). Claremont McKenna College Robert Day School of Economics and Finance Research Paper. Available at SSRN: http://ssrn.com/abstract=2370983 or http://dx.doi.org/10.2139/ssrn.2370983

Contact Information

Ananda Roop Ganguly
Claremont McKenna College - Robert Day School of Economics and Finance ( email )
500 E. Ninth Street
Claremont, CA 91711
United States
(909) 607-0720 (Phone)
(909) 621-8249 (Fax)
HOME PAGE: http://www.claremontmckenna.edu/academic/faculty/profile.asp?Fac=519

Joshua Tasoff (Contact Author)
Claremont Colleges - Claremont Graduate University ( email )
150 E. Tenth Street
Claremont, CA 91711
United States
HOME PAGE: http://sites.cgu.edu/tasoffj/
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