Traditional economic and decision-making models allow for "free disposal" of information, meaning that more information will always make a decision maker (weakly) better off. This implies that those faced with decisions should always place non-negative value on information. Building on previous...

We apply a model of preferences for information to the domain of decision making under risk and ambiguity. An uncertain prospect exposes an individual to an information gap. Gambling makes the missing information more important, attracting more attention to the information gap. To the extent...

Standard economic models assume that the weight given to information from different sources depends exclusively on its diagnosticity. In this paper we study whether the same piece of information is weighted more heavily simply because it arose from direct experience rather than from observation....