Working Paper Number
WP #09026, November 2009; Old working paper #13128
This paper reviews and synthesizes the theory of information economics and empirical evidence on how information changes the behavior of consumers, households and firms. I show that consumers respond to new information in food experiments but perhaps not in retirement account management. Some seeming perverse consumer/investor decision making may be a result of a complex decision with a low expected payoff.
D8, D01, D03, D1, D2
Huffman, Wallace E., "Does information change behavior?" (2009). Economics Working Papers (2002–2016). 151.