Risk attitudes impact price for knowing probabilities in decision making
The article explores how people's aversion to uncertainty affects how much they are willing to pay for information about the likelihood of an event happening. The researchers looked at two scenarios where buying information either involved taking a risk or avoiding a risky situation. Using a specific model, they found that people's attitudes towards risk and uncertainty influenced how much they were willing to pay for information. The level of uncertainty in the situation also played a role in determining the price people were willing to pay for information.