Personality, information acquisition, and choice under uncertainty

An experimental study

Guillaume Frechette, Andrew Schotter, Isabel Trevino

    Research output: Contribution to journalArticle

    Abstract

    This article studies the role of personality in choice under risk and uncertainty. We explore the hypothesis that personality plays a role in decision making in situations of uncertainty but not in situations of risk. In addition to offering support for this main hypothesis, we explore the various pathways through which personality exerts its influence. What we find is that in uncertain environments, where decision makers are able to acquire information about the unknown probability distributions they face, personality variables influence the type of information people acquire, which then influences their choice. Our experimental design brings in two novel aspects of choice under uncertainty: information acquisition and advice. The findings indicate that indeed, under uncertainty, personality matters for choice in a way it does not under risk. Furthermore, the results suggest that personality can play a role at multiple levels, such as people's preferences for certain types of information and the likelihood of following advice.

    Original languageEnglish (US)
    JournalEconomic Inquiry
    DOIs
    StateAccepted/In press - 2017

    Fingerprint

    Experimental study
    Information acquisition
    Choice under uncertainty
    Uncertainty
    Decision maker
    Risk and uncertainty
    Experimental design
    Decision making
    Probability distribution
    Pathway

    ASJC Scopus subject areas

    • Business, Management and Accounting(all)
    • Economics and Econometrics

    Cite this

    Personality, information acquisition, and choice under uncertainty : An experimental study. / Frechette, Guillaume; Schotter, Andrew; Trevino, Isabel.

    In: Economic Inquiry, 2017.

    Research output: Contribution to journalArticle

    Frechette, Guillaume ; Schotter, Andrew ; Trevino, Isabel. / Personality, information acquisition, and choice under uncertainty : An experimental study. In: Economic Inquiry. 2017.
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