TY - JOUR
T1 - A COMPARISON OF INFORMATION STRUCTURES FOR A RIGID DECISION RULE CASE
AU - Ahituv, Niv
PY - 1981/7
Y1 - 1981/7
N2 - The information economics model of individual decision assumes that decision makers are capable of instantly modifying their decision rules in response to signal changes from the information structure. Individuals, however, often tend to stick to rigid decision rules, particularly when they are trained to respond with conditioned reactions, such as to a traffic light. This article modifies the individual decision model for such cases. It discusses probabilistic information structures as well as the deterministic information function. It results in an ordering of information structures that differs from the ordering imposed by the Blackwell Theorem. When deterministic information functions are considered, an ordering that is finer than the prevailing one is proposed. Transformations between deterministic and probabilistic information functions and the relationship between the proposed model and the previous theory are also discussed.
AB - The information economics model of individual decision assumes that decision makers are capable of instantly modifying their decision rules in response to signal changes from the information structure. Individuals, however, often tend to stick to rigid decision rules, particularly when they are trained to respond with conditioned reactions, such as to a traffic light. This article modifies the individual decision model for such cases. It discusses probabilistic information structures as well as the deterministic information function. It results in an ordering of information structures that differs from the ordering imposed by the Blackwell Theorem. When deterministic information functions are considered, an ordering that is finer than the prevailing one is proposed. Transformations between deterministic and probabilistic information functions and the relationship between the proposed model and the previous theory are also discussed.
KW - Decision Processes
KW - Information Economics
KW - Statistical Decision Theory.
UR - http://www.scopus.com/inward/record.url?scp=84989406607&partnerID=8YFLogxK
U2 - 10.1111/j.1540-5915.1981.tb00093.x
DO - 10.1111/j.1540-5915.1981.tb00093.x
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AN - SCOPUS:84989406607
SN - 0011-7315
VL - 12
SP - 399
EP - 416
JO - Decision Sciences
JF - Decision Sciences
IS - 3
ER -