Entropy and the Value of Information for Investors: The Prior-FreeImplications

Ran Shorrer

Working Paper from Harvard University OpenScholar

Abstract: Blackwell dominance is a partial order over information structures that is based on the uniform preference of all decision makers for one structure over another in all decision problems. I restrict attention to investment decision problems with ruin-averse investors (Cabrales, Gossner and Serrano, 2013), and compare substantive rejections of information transactions (uniform over all utilities and prior beliefs). This yields the partial order of prior-independent investment dominance, which strictly extends Blackwell's order. Thus, many pairs of information structures that are not ranked by the Blackwell criterion may still be ranked in investment problems independently of the prior.

Date: 2015-05
References: Add references at CitEc
Citations:

Downloads: (external link)
http://scholar.harvard.edu/ran/node/258061

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qsh:wpaper:258061

Access Statistics for this paper

More papers in Working Paper from Harvard University OpenScholar Contact information at EDIRC.
Bibliographic data for series maintained by Richard Brandon ( this e-mail address is bad, please contact ).