We design an experiment to study how reversible entry decisions are affected by public and private payoff disclosure policies. In our environment, subjects choose between a risky payoff, which evolves according to an autoregressive process, and a constant outside option payoff. The treatments...

The idea that preferences are only revealed by real incentives is deeply embedded in economists' worldview. Consequently, evidence from hypothetical experiments has not readily permeated economic thinking. One method for determining whether hypothetical experiments provide useful information...