Information acquisition: stopping rules for varying levels of probabilities and consequences

Abstract

An experiment aiming to assess the use of stopping rules in information acquisition was performed. Participants were requested to make a decision on 24 economic/financial scenarios with the possibility of buying information pieces. Behavioral and EEG data were recorded for analysis. Results showed that participants followed Bayesian calculations in order to determine a stop on information acquisition. Moreover, the information acquisition strategies were consistent with prospect theory, in which participants weigh information pieces differently and seek more or less information given different manipulations in scenario probability, consequences and valence of consequences. EEG data suggest effects at frontal electrodes.