Measuring Choice Difficulty (opens in new tab)

We provide a theoretical framework to understand how widely used measures of choice difficulty relate. In a binary-option Bayesian expected-utility framework, we show that three measures of difficulty, (i) understanding (ex-ante value), (ii) choice randomness, and (iii) confidence that the chosen option is ex post correct, are, in general, unrelated, and that this result extends to other potential measures like attenuation. We provide intuitive ...