CFDP 1208
Preference for Information and Dynamic Consistency
Author(s):Publication Date: January 1999
Pages: 18
Abstract:
We provide necessary and sufficient conditions for a dynamically consistent agent always to prefer more informative signals (in single-agent problems). These conditions do not imply recursivity, reduction or independence. We provide a simple definition of dynamically consistent behavior, and we discuss whether an intrinsic information lover (say, an anxious person) is likely to be dynamically consistent.
Keywords:
Information, non-expected utility, dynamic consistency, randomization, anxiety
Note:
Published in Theory and Decision (May 2000), 48(3): 263-286 [Springer]