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Information foraging with an oracle.

Jeremy Gordon1, Flavio Chierichetti2, Alessandro Panconesi2

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Summary
This summary is machine-generated.

People seek expert advice for financial gain and to reduce uncertainty. Decisions on seeking guidance balance costs and benefits, especially for those intolerant of uncertainty.

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Area of Science:

  • Cognitive Science
  • Decision Making
  • Behavioral Economics

Background:

  • Individuals often face decisions involving exploiting known options versus exploring new ones.
  • Balancing costs and benefits is crucial in ecological and everyday choices.
  • External advice can be sought from experts or recommendation systems.

Purpose of the Study:

  • To investigate how individuals manage cost-benefit tradeoffs when deciding to seek expert advice versus self-exploration.
  • To determine the influence of economic and epistemic goals on advice-seeking behavior.
  • To examine the role of individual differences, such as intolerance of uncertainty, in these decisions.

Main Methods:

  • Two studies were designed where participants chose between paying for expert advice or searching for options independently.
  • Experimental manipulations altered the optimal choice and the value of expert guidance.
  • Participant choices were analyzed in relation to payoff maximization and uncertainty reduction.

Main Results:

  • Participants were more likely to seek advice when it directly improved potential payoff (Study A).
  • Advice seeking increased when it reduced choice uncertainty, independent of payoff (Study B).
  • Individuals with higher intolerance of uncertainty showed a stronger tendency to seek advice for uncertainty reduction.

Conclusions:

  • People seek expert advice to achieve both economic goals (maximizing payoff) and epistemic goals (minimizing uncertainty).
  • Advice-seeking decisions are dynamically sensitive to the perceived costs and benefits.
  • Individual differences, particularly intolerance of uncertainty, significantly modulate the propensity to seek external guidance.