Informativeness of Experiments for MEU - A Recursive Definition

Arbeitspapier

The well-known Blackwell's theorem states the equivalence of statistical informativeness and economic valuableness. Celen (2012) generalizes this theorem, which is well-known for subjective expected utility (SEU), to maxmin expected utility (MEU) preferences. We demonstrate that the underlying definition of the value of information used in Celen (2012) is in contradiction with the principle of recursively defined utility. As a consequence, Celen's framework features dynamic inconsistency. Our main contribution consists in the definition of a value of information for MEU preferences that is compatible with recursive utility and thus respects dynamic consistency.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper Series ; No. 572

Classification and Topics

• Classification: Wirtschaft
• Subject: Value of information ; Maxmin expected utility ; Recursive utility

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Heyen, Daniel ; Wiesenfarth, Boris R.
• Event: Veröffentlichung
• (who): University of Heidelberg, Department of Economics
• (where): Heidelberg
• (when): 2014

Further information

• DOI: doi:10.11588/heidok.00017511
• Handle: http://hdl.handle.net/10419/127386
• URN: urn:nbn:de:bsz:16-heidok-175115
• Last update: 10.03.2025, 11:43 AM CET