Preference for Information and Dynamic Consistency
AbstractWe provide necessary and sufficient conditions for a dynamically consistent agent always to prefer more informative signals (in single-agent problems). These conditions do not imply recursivity, reduction or independence. We provide a simple definition of dynamically consistent behavior, and we discuss whether an intrinsic information lover (say, an anxious person) is likely to be dynamically consistent.
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Bibliographic InfoArticle provided by Springer in its journal Theory and Decision.
Volume (Year): 48 (2000)
Issue (Month): 3 (May)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100341
Information; Non-expected utility; Dynamic consistency; Randomization; Anxiety;
Other versions of this item:
- Simon Grant & Atsushi Kajii & Ben Polak, 1999. "Preference for Information and Dynamic Consistency," Cowles Foundation Discussion Papers 1208, Cowles Foundation for Research in Economics, Yale University.
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
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