Temporal resolution of uncertainty in risky choices

Early resolution of uncertainty (information) does certainly yield a planning advantage, and yet, many participants prefer late resolution. This paper addresses a solution to this puzzle at the level of formal cost-benefit theories by considering the early uncertainty resolution not only in terms of benefit associated with it, but also in terms of the cost that often accompanies the early resolution. This study investigated the impact of amount, outcome probability and time delay on ratings of preference strength towards late resolution. The main findings in this study are: (i) the preference strength towards late resolution of uncertainty is dependent on the remoteness of the timing of consumption, (ii) the preference strength towards late resolution is a decreasing function of outcome probability, and finally (iii) the preference strength increases in the direction of late resolution as the amount shifts from large to small.