Timing and skewness of information revelation: Evidence on information structures and compound lotteries
Zusammenfassung
In a series of three experiments, we investigate intrinsic preferences for timing and skewness of information
resolution in a “compound lottery” (CL) and “information structure” (IS) environment.
In the first experiment, we rule out predeterminedness of the outcome, i.e., realization before
making the decision, as a driver of different timing preferences between the environments. In the
second experiment, we show that skewness preferences in a two-outcome setting differ between
the two environments. In the third comprehensive experiment, we integrate all three dimensions
(timing, skewness, and environment) into a three-outcome setting, which allows a rigorous treatment
of skewness. With respect to timing, participants prefer to receive information early in both
environments. In case of a gradual resolution, participants strictly prefer positively skewed information
in the IS environment, but symmetric information in the CL environment. Our results show
that skewness and environment must be jointly taken into account when studying preferences for
information resolution.
Schlüsselwörter
Intrinsic preferences; Gradual information revelation; Skewness; Information structures; Compound lotteries