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Blackwell's informativeness ranking with uncertainty-averse preferences

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  • Li, Jian
  • Zhou, Junjie

Abstract

Blackwell (1951, 1953) proposes an informativeness ranking of experiments: experiment I is more Blackwell-informative than experiment II if and only if the value of experiment I is higher than that of experiment II for all expected-utility maximizers. Under commitment and reduction, our main theorem shows that Blackwell equivalence holds for all convex and strongly monotone preferences—i.e., uncertainty-averse preferences (Cerreia-Vioglio et al., 2011b), which nest most ambiguity-averse preferences commonly used in applications as special cases.

Suggested Citation

  • Li, Jian & Zhou, Junjie, 2016. "Blackwell's informativeness ranking with uncertainty-averse preferences," Games and Economic Behavior, Elsevier, vol. 96(C), pages 18-29.
    • Handle: RePEc:eee:gamebe:v:96:y:2016:i:c:p:18-29
    DOI: 10.1016/j.geb.2016.01.009
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    Citations

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    Cited by:

    1. Gérard Mondello, 2022. "Information Source's Reliability," GREDEG Working Papers 2022-21, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Oct 2022.
    2. Hill, Brian, 2020. "Dynamic consistency and ambiguity: A reappraisal," Games and Economic Behavior, Elsevier, vol. 120(C), pages 289-310.
    3. Kim, Yonggyun, 2023. "Comparing information in general monotone decision problems," Journal of Economic Theory, Elsevier, vol. 211(C).
    4. Gérard Mondello, 2021. "Uncertainty and Information Sources' Reliability," GREDEG Working Papers 2021-31, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    5. Roxane Bricet, 2018. "The price for instrumentally valuable information," THEMA Working Papers 2018-10, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    6. Karni, Edi & Safra, Zvi, 2022. "Hybrid decision model and the ranking of experiments," Journal of Mathematical Economics, Elsevier, vol. 101(C).
    7. Chady Jabbour & Anis Hoayek & Jean-Michel Salles, 2022. "Formalizing a Two-Step Decision-Making Process in Land Use: Evidence from Controlling Forest Clearcutting Using Spatial Information," Land, MDPI, vol. 12(1), pages 1-17, December.
    8. Li, Jian & Zhou, Junjie, 2020. "Information order in monotone decision problems under uncertainty," Journal of Economic Theory, Elsevier, vol. 187(C).
    9. Shih-Tang Su & Vijay G. Subramanian & Grant Schoenebeck, 2021. "Bayesian Persuasion in Sequential Trials," Papers 2110.09594, arXiv.org, revised Nov 2021.

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    More about this item

    Keywords

    Blackwell's theorem; Garbling; Ambiguity aversion; Value of information;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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