Beliefs and Utility: Experimental Evidence on Preferences for Information

Beliefs are a central determinant of behavior. Recent models have assumed that beliefs about or the anticipation of future consumption can have direct utility-consequences. This gives rise to informational preferences, i.e., preferences over the timing and structure of information. Using a novel and purposefully simple set-up, we experimentally test key predictions about preferences for information along four natural dimensions. We find evidence that the majority of subjects prefers receiving information sooner. This preference, however, is not uniform, but depends on the context. When the environment allows subjects to not focus attention on (negative) consumption events, later information becomes more attractive. We also identify an aversion towards piecemeal information. Variations in prior distributions do not seem to affect information preferences. JEL classification: C91, D03, D12, D83