Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

No 15/2008: I Don't Want to Hear About it: Rational Ignorance among Duty-Oriented Consumers

Karine Nyborg ()
Additional contact information
Karine Nyborg: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway

Abstract: Individuals with a preference for keeping moral obligations may dislike learning that voluntary contributions are socially valuable: Such informa- tion can trigger unpleasant feelings of cognitive dissonance. I show that if initial beliefs about the social value of contributions are sufficiently low, duty-oriented consumers are willing to pay to avoid information. Attitude campaigns can increase contributions from such consumers by providing them with unwanted information. Consequentialist warm glow types with low initial beliefs, however, will seek low-cost information on their own initiative; thus, campaigns will have less effects for such consumers.

Keywords: Voluntary contributions: public goods; responsibility; altruism; information campaigns; cognitive dissonance

JEL-codes: D11; D62; D64; D89; H41; Q21

26 pages, July 10, 2008

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