The value of perfect information in nonlinear utility theory |
| |
Authors: | Edward E Schlee |
| |
Institution: | (1) Department of Economics, Arizona State University, 85287 Tempe, AZ, USA |
| |
Abstract: | Wakker (1988) has recently shown that, in contrast to an expected utility maximizer, the value of information will sometimes be negative for an agent who violates the independence axiom of expected utility theory. We demonstrate, however, that the value ofperfect information will always be nonnegative if the agent satisfies a weak dominance axiom. This result thus mitigates to some degree the normative objection to nonlinear utility theory implicit in Wakker's finding. |
| |
Keywords: | Value of perfect information nonlinear utility |
本文献已被 SpringerLink 等数据库收录! |
|