TY  - GEN
CY  - Heidelberg
AV  - public
Y1  - 2014/10//
T3  - Discussion Paper Series, University of Heidelberg, Department of Economics
TI  - Informativeness of Experiments for MEU - A Recursive Definition
KW  - Value of information; Maxmin expected utility; Recursive utility
ID  - heidok17511
EP  - 6
A1  - Heyen, Daniel
A1  - Wiesenfarth, Boris R.
UR  - https://archiv.ub.uni-heidelberg.de/volltextserver/17511/
N2  - 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.
ER  -