Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295987 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 10898
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We compare preferences for temporal resolution when uncertainty is resolved over a probability rather than a value. In various frameworks–e.g., Kreps and Porteus (1978)–, preferences over gradual versus one-shot resolution do not depend on whether values or probabilities define the main object of uncertainty. In our experiment, however, most subjects resolved uncertain values gradually but uncertain probabilities all at once–both in the gain and loss frames. This systematic discrepancy motivates an explanation for it that we call "process utility", which highlights the importance of information processing when deducing revealed preferences for temporal resolution from choice data.
Subjects: 
resolution of uncertainty
probability
gradual resolution
one-shot resolution
process utility
non-instrumental information
Kreps-Porteus
Document Type: 
Working Paper
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