Crossroads of Certainty and Uncertainty

Uncertainty Overload: Why We Avoid Information (and When We Crave It)

"New research reveals the psychology behind our desire for information, showing when we embrace the unknown and when we desperately want answers."


In an uncertain world, the question of when we want to know is a constant companion. Should you peek at the calorie count on that tempting dessert? Should you find out if you're carrying a gene that could change your life forever? The ability to calculate the value of information (VOI) is therefore a crucial cognitive skill.

Classical decision theory suggests that we should always welcome more information, because it never hurts to be better informed. Learning a croissant is high in calorie will guide you to a salad instead; learning you will not get Huntington's might make you delay a hasty marriage. However, real-world behavior often throws a wrench in this neat equation. People actively seek information that won’t change their decisions, while simultaneously avoiding information that could be beneficial.

New research digs into this paradox, exploring why we care so deeply about information that seemingly has no impact. Imagine being locked in a room for an hour, with a chance of winning or losing money at the end. Would you want to know your fate at the beginning? The study reveals we're far from indifferent, and our preferences depend on a complex interplay of factors.

The Resource-Rationality Model: Planning and Cognitive Limits

Crossroads of Certainty and Uncertainty

The key to understanding our seemingly irrational information choices lies in recognizing our limited cognitive resources. We don't just passively receive information; we actively decide whether to plan for it. If an event is not going to happen, there is no need to prepare. But if it is going to occur, having early knowledge gives us a valuable head start.

This concept is formalized in the resource-rationality model, which assumes we can choose how much mental energy (computational resources) to dedicate to planning for an event. If the event occurs, this planning pays off with utility gain. However, planning comes at a cost – the mental effort itself. Therefore, we unconsciously weigh the potential benefits of planning against the cost of thinking.

  • Obtain Information: If we get the information, we can plan accordingly (if needed) and gain utility. However, we also incur a cost for acquiring that information.
  • Live in Uncertainty: We can choose to remain ignorant and plan based on the probability of the event occurring. This saves the cost of information but may lead to inefficient planning.
  • Live in Denial: We can ignore the possibility altogether, freeing up mental resources. However, this carries the risk of being completely unprepared if the event does occur.
The value of information, then, becomes the difference between the best-case scenario (knowing what's coming and planning accordingly) and the best alternative (either planning based on probability or simply avoiding the thought altogether). This model explains why we don't always crave information. If the cost of information is too high, or the probability of an event is low, it might be more efficient to simply live with the uncertainty or deny the possibility altogether.

The Bigger Picture: Planning, Prospect Theory, and Why It Matters

This research provides a framework for understanding the cognitive task of obtaining information, explaining why we seek answers even when there are no immediate decisions to make. It highlights two key reasons for rejecting information: the desire to "live in denial" (when the event is unlikely) or to "live in uncertainty" (when the probability is high, and the residual risk is deemed acceptable).

The model also incorporates prospect theory, recognizing that we are risk-averse, experience losses more intensely than gains, and perceive probabilities non-linearly. These factors further influence our desire for information, highlighting the complexity of human decision-making.

Ultimately, understanding when and why we choose to reduce uncertainty has become increasingly important. As information becomes ever more accessible, from genetic predispositions to online habits, the ability to discern its true value will be crucial to navigating our complex world.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1371/journal.pone.0113342, Alternate LINK

Title: Uncertainty And Denial: A Resource-Rational Model Of The Value Of Information

Subject: Multidisciplinary

Journal: PLoS ONE

Publisher: Public Library of Science (PLoS)

Authors: Emma Pierson, Noah Goodman

Published: 2014-11-26

Everything You Need To Know

1

What is the Value of Information (VOI) and how does it influence our decisions?

The Value of Information (VOI) is a cognitive skill that helps us determine whether seeking information is worthwhile. It involves calculating the potential benefits of knowing something versus the costs, such as the mental effort required to process that information. If the cost of information is too high, or the probability of an event is low, the individual might choose to not seek answers.

2

How does the resource-rationality model explain our choices about information?

The resource-rationality model suggests that our choices about information are shaped by our limited cognitive resources. We constantly decide how much mental energy to dedicate to planning for a potential event. Obtaining information allows for planning and potential gains, but it also requires mental effort. Alternatively, we can choose to live in uncertainty, planning based on probabilities, or even live in denial, ignoring the possibility altogether. The model suggests individuals weigh these options based on the costs and benefits associated with each.

3

What does it mean to 'live in denial' in the context of this research?

The concept of living in denial means ignoring the possibility of an event. This is one of the three options presented in the resource-rationality model. Choosing to live in denial frees up mental resources as the individual does not need to plan or think about the event. However, this approach carries the risk of being unprepared if the event does occur.

4

What are the main takeaways from the research regarding why we avoid or seek information?

The research provides a framework to explain why we sometimes seek answers even when there are no immediate decisions to make. It highlights two key reasons: the desire to 'live in denial' when an event is unlikely, or to 'live in uncertainty' when the probability is high, and the residual risk is deemed acceptable. Essentially, it suggests that these choices are made by weighing the costs of obtaining information against the benefits of planning and the potential risks of being unprepared.

5

What is 'planning' and how does it relate to the concepts discussed?

Planning, as used in the context of the research, refers to the mental preparation and allocation of resources to prepare for a potential event. The resource-rationality model assumes that we consciously weigh the potential benefits of planning against the cost of thinking. If an event is going to occur, early knowledge gives a valuable head start. Planning can involve different strategies, from obtaining information to planning based on probability or denying the possibility altogether.

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