We report on an experiment that shows that subjects prefer a gradual resolution of uncertainty when information about winning yields decisive bad news but inconclusive good news. This behavior is difficult to reconcile with standard theories of choice, including Kreps-Porteus preferences. We propose a new theory, Peak-Trough-Utility (Gul, Natenzon and Pesendorfer (2019), to capture the observed behavior.

It will also talk about the connected paper : www.princeton.edu/~pesendor/rel.pdf

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