Information Avoidance from Exogenous vs Endogenous Sources: Theory and Experiment

42 Pages Posted: 2 Sep 2022

See all articles by Delong Meng

Delong Meng

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management

Siyu Wang

Wichita State University

Multiple version iconThere are 3 versions of this paper

Abstract

Using a dynamic theory of preference formation, we investigate how information avoidance depends on whether the source is exogenous or endogenous (i.e. identical or tailored to individuals). Our model suggests that when information is exogenous, open-minded people are less likely to avoid information and consequently become more informed. When information is endogenous, however, close-minded individuals are more difficult to persuade and thereby force the sender to reveal more information. Our experiment confirms the main theoretical predictions and suggests that the dynamic preference theory plays an important role in addressing information avoidance. In departure from the theory, we observe that people tend to avoid more information than predicted, especially when the information is tailored. Our structural model suggests that this is due to a distaste for changing one’s worldview when information is from an endogenous source. This provides some evidence to address why the widely adopted communication strategy with a tailored message may be less effective than the theory suggests. (JELCodes: C91, D82, D83, D91)

Keywords: information avoidance, Bayesian persuasion, Experiment

Suggested Citation

Meng, Delong and Wang, Siyu, Information Avoidance from Exogenous vs Endogenous Sources: Theory and Experiment. Available at SSRN: https://ssrn.com/abstract=4207822 or http://dx.doi.org/10.2139/ssrn.4207822

Delong Meng

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management ( email )

Siyu Wang (Contact Author)

Wichita State University ( email )

United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
33
Abstract Views
369
PlumX Metrics