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Information Aversion / Marianne Andries, Valentin Haddad.
- Format:
- Book
- Author/Creator:
- Andries, Marianne.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w23958.
- NBER working paper series no. w23958
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2017.
- Summary:
- The main features of households' attention to savings are rationalized by a model of information aversion, a preference-based fear of receiving flows of news. In line with the empirical evidence, information averse investors observe the value of their portfolios infrequently; inattention is more pronounced for more risk averse investors and in periods of low or volatile stock prices. The model also explains how changes in information frequencies affect risk-taking decisions, as observed in the field and the lab. Further, we find that receiving state-dependent alerts following sharp downturns improves welfare, suggesting a role for financial intermediaries as information managers.
- Notes:
- Print version record
- October 2017.
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