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Preferences for observable information in a strategic setting: An experiment

Author

Listed:
  • Adam Zylbersztejn

    (Univ Lyon, Université Lumière Lyon 2, GATE L-SE UMR 5824, 69130 Ecully, France)

  • Zakaria Babutsidze

    (SKEMA Business School, Université Côte d'Azur (GREDEG) and OFCE, Sciences Po Paris)

  • Nobuyuki Hanaki

    (Institute of Social and Economic Research, Osaka University)

Abstract
We experimentally investigate how much value people put in observable information about others in strategic interactions. The incentivized experimental task is to predict an unknown target player's trustworthiness in an earlier hidden action game. In Experiment 1, we vary the source of information about the target player (neutral picture, neutral video, video containing strategic content). The observed prediction accuracy rates then serve as an empirical measure of the objective value of information. In Experiment 2, we elicit the subjective value of information using the standard stated preferences method ("willingness to accept"). While the elicited subjective values are ranked in the same manner as the objective ones, subjects attach value to information which does not help predict target behavior, and exaggerate the value of helpful information.

Suggested Citation

  • Adam Zylbersztejn & Zakaria Babutsidze & Nobuyuki Hanaki, 2019. "Preferences for observable information in a strategic setting: An experiment," Working Papers 1936, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    • Handle: RePEc:gat:wpaper:1936
    as

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    File URL: ftp://ftp.gate.cnrs.fr/RePEc/2019/1936.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Adam Zylbersztejn & Zakaria Babutsidze & Nobuyuki Hanaki, 2021. "Predicting trustworthiness across cultures: An experiment," Post-Print hal-03432600, HAL.
    2. Zakaria Babutsidze & Nobuyuki Hanaki & Adam Zylbersztejn, 2021. "Nonverbal content and trust: An experiment on digital communication," Economic Inquiry, Western Economic Association International, vol. 59(4), pages 1517-1532, October.
    3. Zylbersztejn, Adam & Babutsidze, Zakaria & Hanaki, Nobuyuki & Hopfensitz, Astrid, 2024. "How beautiful people see the world: Cooperativeness judgments of and by beautiful people," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 296-308.

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    More about this item

    Keywords

    prediction; observable information; individual characteristics; stated preferences; willingness to accept; experiment;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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