Information Acquisition in Affiliated Decision Problems
AbstractThis paper investigates information acquistion in decision problems. We introduce a new notion of "better information", Accuracy-order (A-order), defined on continuous families of signals. Accuracy formalizes the idea that "a signal that is more correlated with the unknown random variable is better". This concept is indigenous to an economically interesting subset of all decision problems, those where signals are affiliated and the payoff function satisfies the single-crossing property. On this subset, this notion is found to be "tight", in the sense that A-order is an if-and-only-if condition for better information. Thus, a Blackwell-type result is obtained. On the subset, it is shown that Blackwell's Sufficiency is a special case of Accuracy. Finally, a comparative statics result is obtained, about which decision problem will induce more information acquistion.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 1149.
Date of creation: Feb 1996
Date of revision:
Contact details of provider:
Postal: Center for Mathematical Studies in Economics and Management Science, Northwestern University, 580 Jacobs Center, 2001 Sheridan Road, Evanston, IL 60208-2014
Web page: http://www.kellogg.northwestern.edu/research/math/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Nicola Persico, 2000.
"Information Acquisition in Auctions,"
Econometric Society, vol. 68(1), pages 135-148, January.
- Juan Dubra & Federico Echenique, 2004.
"Monotone Preferences Over Information,"
Yale School of Management Working Papers
ysm405, Yale School of Management.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fran Walker).
If references are entirely missing, you can add them using this form.