The standard decision-theoretic model separates information and preferences. We argue that some behavioral phenomena in information processing (e.g., polarization) are closely related to this separation. We propose a model in which agents receive vague information, which they refine when they are required to make probabilistic judgments, or to take an action. By doing so, they also refine their beliefs about some traits or states (e.g., their information-processing ability), which affects their utility.
- Processing of vague information
- Separation of preferences and information
ASJC Scopus subject areas
- Economics and Econometrics
- Applied Mathematics