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PROSPECT examines how individuals assess the value of acquiring information before making decisions. The project aims to identify biases in decision-making processes and how these biases affect the ability to gather and utilize information effectively in various contexts.
Many important economic decisions are made after individuals have had opportunities to acquire information.
For example, investors can do research about the fundamentals of companies to estimate their future stock prices; consumers can read reviews before making purchase decisions; managers can experiment with different organizational structures before settling on one.
As information acquisition is costly, decision-makers must evaluate its benefit ex ante by engaging in prospective learning, tha…
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