(Over-)Optimism in Two-Stage Choice

Charles Zhang, Boston College, USA
Rajesh Bhargave , University of Texas at San Antonio, USA
Abhijit Guha, Wayne State University, USA
Amitav Chakravarti, London School of Economics, UK
We show that expecting to receive extra information in the future leads to greater optimism and lesser aversion to uncertain options. Specifically, people prefer uncertain options in the screening stage of two-stage choice than in direct choice, but only when they expect to receive new information for their second-stage decision.
[ to cite ]:
Charles Zhang, Rajesh Bhargave , Abhijit Guha, and Amitav Chakravarti (2013) ,"(Over-)Optimism in Two-Stage Choice", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.