THEORETICAL ASPECTS OF THE ROLE OF INFORMATION IN THE PROCESS OF DECISIONS/RISKS MODELING

Constantin Anghelache, Madalina-Gabriela Anghel and Gyorgy Bodo
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Constantin Anghelache: Bucharest University of Economic Studies/„Artifex" University of Bucharest
Madalina-Gabriela Anghel: „Artifex" University of Bucharest
Gyorgy Bodo: Bucharest University of Economic Studies

Romanian Statistical Review Supplement, 2017, vol. 65, issue 6, 102-111

Abstract: Access to information is a key element in the decision-making process. Intuitively, it can be assumed that the decision will be more substantiated and based more on rational than on subjective ones as long as the decision maker has more information. In this article, we analyzed some theoretical aspects of the correlation between information level and modeling of decisional risk. They address the importance of information in decision-making (information is power), the determination of the degree of uncertainty and the outcome of the decision, as well as the main objective of modeling, maximizing benefits. Different aspects of access to information have also been taken into account, cases known as asymmetric information, where some participants have access to more information than the main effects. We have also analyzed the cost implications of information by which some agents buy information to be in a competitive position, or invest heavily in IT systems for collecting, storing, processing data. Last but not least, we have considered some aspects of the impact of information in the development of macroeconomic forecasts.

Keywords: decision; information; modeling; simulation; probability; utility (search for similar items in EconPapers)
JEL-codes: G14 G17 G31 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:rsr:supplm:v:65:y:2017:i:6:p:102-111

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