When are Signals Complements or Substitutes?

Tilman Börgers (), Angel Hernando-Veciana () and Daniel Krähmer

MPRA Paper from University Library of Munich, Germany

Abstract: The paper introduces a notion of complementarity (substitutability) of two signals which requires that in all decision problems each signal becomes more (less) valuable when the other signal becomes available. We provide a general characterization which relates com- plementarity and substitutability to a Blackwell comparison of two auxiliary signals. In a setting with a binary state space and binary signals, we find an explicit characteriza- tion that permits an intuitive interpretation of complementarity and substitutability. We demonstrate how these conditions extend to more general settings.

Keywords: Information; signals; complementarity; substitutability. (search for similar items in EconPapers)
JEL-codes: D80 (search for similar items in EconPapers)
Date: 2010-08
New Economics Papers: this item is included in nep-cta
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/29124/1/MPRA_paper_29124.pdf original version (application/pdf)

Related works:
Journal Article: When are signals complements or substitutes? (2013)
Working Paper: When are Signals Complements or Substitutes (2010)
Working Paper: When are signals complements or substitutes? (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:29124

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