title: Informativeness of Experiments for MEU - A Recursive Definition
creator: Heyen, Daniel
creator: Wiesenfarth, Boris R.
subject: 330
subject: 330 Economics
description: 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.
date: 2014-10
type: Working paper
type: info:eu-repo/semantics/workingPaper
type: NonPeerReviewed
format: application/pdf
identifier: https://archiv.ub.uni-heidelberg.de/volltextserverhttps://archiv.ub.uni-heidelberg.de/volltextserver/17511/1/Heyen_Wiesenfarth_2014_dp572.pdf
identifier: DOI:10.11588/heidok.00017511
identifier: urn:nbn:de:bsz:16-heidok-175115
identifier:   Heyen, Daniel ; Wiesenfarth, Boris R.  (2014) Informativeness of Experiments for MEU - A Recursive Definition.  [Working paper]     
relation: https://archiv.ub.uni-heidelberg.de/volltextserver/17511/
rights: info:eu-repo/semantics/openAccess
rights: http://archiv.ub.uni-heidelberg.de/volltextserver/help/license_urhg.html
language: eng