Expectations with Endogenous Information Acquisition: An Experimental Investigation - Sciences Po Access content directly
Journal Articles Review of Economics and Statistics Year : 2022

Expectations with Endogenous Information Acquisition: An Experimental Investigation

Abstract

We use a survey experiment to generate direct evidence on how people acquire and process information. Participants can buy different information signals that could help them forecast future national home prices. We elicit their valuations and exogenously vary the cost of information. Participants put substantial value on their preferred signal and, when acquired, incorporate the signal in their beliefs. However, they disagree on which signal to buy. As a result, making information cheaper does not decrease the cross-sectional dispersion of expectations. We provide a model with costly acquisition and processing of information, which can match most of our empirical results.
Fichier principal
Vignette du fichier
2019_fuster_perez_truglia_wiederholt_zafar_expectations_with_endogenous_information_acquisition_an_experimental_investigation.pdf (683.84 Ko) Télécharger le fichier

Dates and versions

hal-03878688 , version 1 (30-11-2022)

Licence

Attribution

Identifiers

Cite

Andreas Fuster, Ricardo Perez-Truglia, Mirko Wiederholt, Basit Zafar. Expectations with Endogenous Information Acquisition: An Experimental Investigation. Review of Economics and Statistics, 2022, 104 (5), pp.1059-1078. ⟨10.1162/rest_a_00994⟩. ⟨hal-03878688⟩
23 View
120 Download

Altmetric

Share

Gmail Facebook X LinkedIn More