PREFERENCE REVERSALS FOR ATOMIC INFORMATION BUNDLES IN LOTTERIES WITH MULTIPLE ACTIONS

摘要

This paper investigates information preference reversals in a simple lottery setting where the decision maker has the option to either skip the lottery or bet on an outcome. The decision maker has the option to acquire information generated by singleton events before making a decision on the lottery. Expected utility increase and buying price approaches are compared in ranking of information bundles. We observe that the sign of outcomes forming singleton events and the initial decision on the lottery are two important factors that determine preference reversals.