Desirability and information processing: An experimental study

- Biased overweighting of good news relative to bad news is tested in the lab.
- News are related to financially desirable but ego-irrelevant events.
- No evidence of asymmetric updating in favor of good or bad news is found.

I study, in an experimental setting, how individuals process news regarding the likelihood of an event that is desirable, but not ego-relevant. I hypothesize that individuals biasedly favor good news over bad news, but find no support for this hypothesis.