Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2013:17: Strategic Self-Ignorance

Linda Thunström (), Jonas Nordström (), Jason F. Shogren (), Mariah Ehmke () and Klaas van 't Veld ()
Additional contact information
Linda Thunström: Department of Economics and Finance, University of Wyoming, Postal: Department of Economics and Finance, University of Wyoming, 1000 E. University Ave. , Laramie, WY 82071, USA
Jonas Nordström: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden
Jason F. Shogren: Department of Economics and Finance, University of Wyoming, Postal: Department of Economics and Finance, University of Wyoming, 1000 E. University Ave. , Laramie, WY 82071, USA
Mariah Ehmke: Department of Agricultural and Applied Economics, University of Wyoming, Postal: Department of Agricultural and Applied Economics, University of Wyoming, 1000 E. University Ave. , Laramie, WY 82071, USA
Klaas van 't Veld: Department of Economics and Finance, University of Wyoming, Postal: Department of Economics and Finance, University of Wyoming, 1000 E. University Ave. , Laramie, WY 82071, USA

Abstract: We examine strategic self-ignorance—the use of ignorance as an excuse to over-indulge in pleasurable activities that may be harmful to one’s future self. Our model shows that guilt aversion provides a behavioral rationale for present-biased agents to avoid information about negative future impacts of such activities. We then confront our model with data from an experiment using prepared, restaurant-style meals—a good that is transparent in immediate pleasure (taste) but non-transparent in future harm (calories). Our results support the notion that strategic self-ignorance matters: nearly three of five subjects (58 percent) chose to ignore free information on calorie content, leading at-risk subjects to consume significantly more calories. We also find evidence consistent with our model on the determinants of strategic self-ignorance.

Keywords: Experiment; Information; Ignorance

JEL-codes: D03; D81; D83

38 pages, May 28, 2013

Full text files

WP13_17.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Prakriti Thami ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-03-09 16:03:09.