Strategic Ignorance and the Perceived Efficacy of Taking Action

Abstract When useful information is distressing, it may be deliberately ignored. In this paper, we examine, both theoretically and experimentally, whether increasing perceived efficacy—the belief that one’s actions can influence an outcome—reduces such strategic ignorance. Participants in India are given the choice to receive or avoid information about the average loss in life expectancy due to air pollution in their district and are later asked to recall this information. We find that increasing perceived efficacy significantly improves recall, particularly among participants with optimistic prior beliefs. The pattern is confirmed when conducting the same experiment in the United States. Our theoretical framework highlights how perceived efficacy shapes the interplay between anticipatory and realised utility, thereby influencing strategic ignorance.