eprintid: 17511
rev_number: 16
eprint_status: archive
userid: 2744
dir: disk0/00/01/75/11
datestamp: 2014-10-21 09:49:12
lastmod: 2015-04-22 12:16:16
status_changed: 2014-10-21 09:49:12
type: workingPaper
metadata_visibility: show
creators_name: Heyen, Daniel
creators_name: Wiesenfarth, Boris R.
title: Informativeness of Experiments for MEU - A Recursive Definition
subjects: 330
divisions: 181000
keywords: Value of information; Maxmin expected utility; Recursive utility
abstract: 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
id_scheme: DOI
id_number: 10.11588/heidok.00017511
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0572
ppn_swb: 1659402336
own_urn: urn:nbn:de:bsz:16-heidok-175115
language: eng
bibsort: HEYENDANIEINFORMATIV201410
full_text_status: public
series: Discussion Paper Series, University of Heidelberg, Department of Economics
volume: 0572
place_of_pub: Heidelberg
pages: 6
citation:   Heyen, Daniel ; Wiesenfarth, Boris R.  (2014) Informativeness of Experiments for MEU - A Recursive Definition.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/17511/1/Heyen_Wiesenfarth_2014_dp572.pdf