The Value of Information in Economic Contexts
Abstrak
This paper explores the application of the <i>Value of Information</i>, <i>(VoI)</i>, based on the Claude Shannon/Ruslan Stratonovich framework within economic contexts. Unlike previous studies that examine circular settings and strategic interactions, we focus on a non-strategic linear setting. We employ standard economically motivated utility functions, including linear, quadratic, constant absolute risk aversion (CARA), and constant relative risk aversion (CRRA), across various priors of the stochastic environment, and analyse the resulting specific <i>VoI</i> forms. The curvature of these <i>VoI</i> functions play a decisive role in determining whether acquiring additional costly information enhances the efficiency of the decision making process. We also outline potential implications for broader decision-making frameworks.
Topik & Kata Kunci
Penulis (2)
Stefan Behringer
Roman V. Belavkin
Akses Cepat
- Tahun Terbit
- 2025
- Sumber Database
- DOAJ
- DOI
- 10.3390/psf2025012006
- Akses
- Open Access ✓