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 that the uncertainty (or other circumstances) makes the information gap unpleasant to think about, an individual tends to be averse to risk and ambiguity. Yet when an information gap happens to be pleasant, an individual may seek gambles providing exposure to it. The model provides explanations for source preference regarding uncertainty, the comparative ignorance effect under conditions of ambiguity, aversion to compound risk, and other phenomena. We present an empirical test of one of the model's novel predictions.

How do people respond when decision-relevant information is withheld by sellers? The authors address this general question by examining how prospective diners respond when sanitation inspection grades (SIGs) are not reported by a restaurant. Despite disclosure mandates in some municipalities, SIGs are not always available when dining choices are made, especially when food is ordered for delivery. After documenting participants’ failure to discount appropriately for a missing SIG, the authors demonstrate, through a series of follow-up studies, the robustness of the phenomenon in the face of interventions designed to increase the salience of the missing information. The authors find evidence of increased discounting, however, in a study designed to draw attention to the missing information via a side-by-side comparison of restaurants that did and did not provide SIGs.

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 that the uncertainty (or other circumstances) makes the information gap unpleasant to think about, an individual tends to be averse to risk and ambiguity. Yet when an information gap happens to be pleasant, an individual may seek gambles providing exposure to it. The model provides explanations for source preference regarding uncertainty, the comparative ignorance effect under conditions of ambiguity, aversion to compound risk, and other phenomena. We present an empirical test of one of the model's novel predictions.

Many choices are complex. These choices entail consideration of multiple variables characterized by non-linear interactions. Prior research into the complex choice process of people neglects two categories of major choice determinants: heuristics and biases. This research takes on the challenge of integrating such behavior determinants into the study of complex choices. We do so using a new experimental paradigm in which participants tune on-screen dials that represent choice variables. Through their tuning efforts, participants can discover information about the choice space. Specifically, this new paradigm allows us to document how anchoring and framing effects impact the complex choice process. We find that loss framing incites participants to expend more effort examining choice variables before selecting an option. An aspirational anchor, on the other hand, was correlated with decreased search effort by participants. Interestingly, the two did not share an interaction. Additionally, when participants did not have an aspirational anchor, the data suggest they relied on prior experience for an anchor value.