TY - JOUR
T1 - Hybrid decision model and the ranking of experiments
AU - Karni, Edi
AU - Safra, Zvi
N1 - Publisher Copyright:
© 2022 Elsevier B.V.
PY - 2022/8
Y1 - 2022/8
N2 - Departing from the reduction of compound lotteries axiom on multi-stage lotteries, this paper proposes a new hybrid model to analyze decision trees. Applied to multi-stage decision trees induced by experiments, Blackwell's (1953) definition of the relation “more informative” on the set of information structures is equivalent to experiments being more valuable to a class of non-expected utility preferences. This result extends Blackwell's theorem and provides new insights regarding the evaluation of information produced by experiments.
AB - Departing from the reduction of compound lotteries axiom on multi-stage lotteries, this paper proposes a new hybrid model to analyze decision trees. Applied to multi-stage decision trees induced by experiments, Blackwell's (1953) definition of the relation “more informative” on the set of information structures is equivalent to experiments being more valuable to a class of non-expected utility preferences. This result extends Blackwell's theorem and provides new insights regarding the evaluation of information produced by experiments.
KW - Blackwell's theorem
KW - Comparison of experiments
KW - Hybrid decision analysis
KW - Reduction of compound lotteries
KW - Value of information
UR - http://www.scopus.com/inward/record.url?scp=85129934331&partnerID=8YFLogxK
U2 - 10.1016/j.jmateco.2022.102700
DO - 10.1016/j.jmateco.2022.102700
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AN - SCOPUS:85129934331
SN - 0304-4068
VL - 101
JO - Journal of Mathematical Economics
JF - Journal of Mathematical Economics
M1 - 102700
ER -