Many of the Information Economics models are engaged in optimizing decision rules for given information structures. This article takes a counter direction - from given decision rules to information structures. It examines decision rules and firstly reduces the number of considerable rules up to a finite number. Then it describes how an optimal information structure can be obtained for any given decision rule, and lays out the adjustment process that leads towards reaching a mutual optimization of decision rules and information structures. The analogy between this adjustment process and the observed phenomenon of information systems life cycle is discussed. This discussion establishes a relationship between descriptive and normative theories in MIS.
|Number of pages||13|
|Journal||International journal of policy analysis and information systems|
|State||Published - 1982|