What Is Information Bias In Behavioral Economics?

Information bias is a phenomenon in which people have a tendency to seek out and use information, even when it is not necessary or relevant to the task or decision at hand. This can happen because people tend to value information and may believe that more information is always better. However, excessive or irrelevant information can actually make it more difficult to make a decision or solve a problem, as it can increase the complexity of the situation and lead to confusion or uncertainty. Information bias can lead to errors in judgment and decision-making, as it can cause people to overlook important information or to focus on irrelevant information, and to make decisions that are not based on the most relevant or useful information. To avoid information bias, it is important to carefully evaluate the information that is available, and to consider its relevance and usefulness before using it to make a decision or solve a problem. This can help us to make more effective and efficient decisions, and to avoid being overwhelmed by unnecessary or irrelevant information.

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