IDEAS home Printed from https://ideas.repec.org/p/sus/susewp/0825.html

Value of Partial Information

Author

Listed:
  • Jürgen Eichberger
  • Illia Pasichnichenko

    (University of Sussex)

Abstract

Blackwell’s theorem relates the value of information to the “informativeness†of the information structure. His analysis applies to decision makers who are expected utility maximizers and know the information structure of the decision problem. When decision makers do not know the information structure precisely, the signal generating process and the posterior distributions are often only partially known. This paper studies preferences of decision makers with partial knowledge about signals and posterior probability distributions. The partial information approach allows us to relate the value of information to the decision maker’s attitude towards ambiguity. We introduce a new concept of informativeness based on the centroid and prove a theorem in the spirit of Blackwell. Furthermore, we characterize the value of information in terms of the preference relation over information structures. Depending on ambiguity attitude the value of information may be negative.

Suggested Citation

  • Jürgen Eichberger & Illia Pasichnichenko, 2025. "Value of Partial Information," Working Paper Series 0825, Department of Economics, University of Sussex Business School.
    • Handle: RePEc:sus:susewp:0825
    as

    Download full text from publisher

    File URL: https://www.sussex.ac.uk/webteam/gateway/file.php?name=wps-09-2025.pdf&site=18
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sus:susewp:0825. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: University of Sussex Business School Communications Team (email available below). General contact details of provider: https://edirc.repec.org/data/ecsusuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.