Decreasing Marginal Value of Information Under Symmetric Loss

Decreasing Marginal Value of Information Under Symmetric Loss

Paradoxes in Learning and the Marginal Value of Information

W consider the Bayesian ranking and selection problem, in which one wishes to allocate an information collection budget as efficiently as possible to choose the best among several alternatives. In this problem, the marginal value of information is not concave, leading to algorithmic difficulties and apparent paradoxes. Among these paradoxes is that when there are many identical alternatives, it...

Economic value of water in the manufacturing industry of Yazd Province: Value of marginal product approach

The optimal allocation of water is importance because Yazd province has very limited access to water resources. The optimal allocation requires that the water price be approximately equal to its economic value. Accordingly, the present paper calculated the economic value of water consumed by manufacturing industries in Yazd province. The Cobb-Douglas, transcendental, translog, generalized quadr...

The value of information under unawareness

The value of information is examined in a single-agent environment with unawareness. Although the agent has a correct prior about events he is aware of and has a clear understanding of his available actions and payoffs, his unawareness may lead him to commit information processing errors and to behave suboptimally. As a result, the value of information can be negative, contrasting what is true ...

Decreasing aversion under ambiguity

Under which condition does the set of desirable uncertain prospects expand when wealth increases? We show that the decreasing concavity (DC) of the utility function  is necessary and sufficient in the −maxmin expected utility model. In the smooth ambiguity aversion model with the ambiguity valuation function , the DC of  and of ◦ is necessary and sufficient. An alternative definition of d...