The relevance of irrelevant information

Ian Chadd (), Emel Filiz-Ozbay and Erkut Ozbay
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Ian Chadd: Rensselaer Polytechnic Institute

Experimental Economics, 2021, vol. 24, issue 3, No 10, 985-1018

Abstract: Abstract This paper experimentally investigates the effect of introducing unavailable alternatives and irrelevant information regarding the alternatives on the optimality of decisions in choice problems. We find that the presence of unavailable alternatives and irrelevant information generates suboptimal decisions with the interaction between the two amplifying this effect. Irrelevant information in any dimension increases the time costs of decisions. We also identify a “preference for simplicity” beyond the desire to make optimal decisions or minimize time spent on a decision problem.

Keywords: Presentation set; Bounded rationality; Simplicity; Costly ignorance; Free disposal of information (search for similar items in EconPapers)
JEL-codes: D03 D83 D91 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10683-020-09687-3

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