Test design for dramatic situations such as genetic testing

What is it about?

More information is appreciated by agents who need to take an important decision -- at least according to standard economics. Our paper demonstrates that this is often not the case if decisions are fundamental. As an important example, medical tests, e.g., for genetic disorders like Chorea Huntington, are often avoided by patients. In this paper, we propose testing approaches for those wo shy away from a perfectly revelatory test.

Featured Image

Why is it important?

Currently, most people at risk of a severe genetic disorder such as Chorea Huntington refuse to take the diagnostic test. These people are afraid of losing their hope through a test result that confirms the disorder. We propose new tests that figure in this fear. These tests avoid ending up in a situation of no hope. This way, people who would like to know better, but who are too afraid of taking a perfectly revelatory test, can get some more information and do not have to refuse all testing. Therefore, they can develop better plans for their life and adapt better to the situation they are in. The results carry over to other situations in which anticipation and/or probability weighting play important roles for decision-makers.

Perspectives