ABSTRACT
The benefits of improving the public's access to information seem obvious. Better information should lead to better decisions for increasing one's welfare. Unfortunately, this simplistic view does not account for the way that people actually respond to "bad news." For example, psychologists hold that people often reject information that conflicts with their preconceptions: smokers sometimes refuse to read accounts about the health risks of smoking, and new car owners may reject negative reports about their recent purchase. On the other hand, people can be alarmed unnecessarily in the face of unfounded scare stories.
