Abstract
This paper deals with decision makers who choose among information systems. It shows that the properties of Schur convexity and of quasi-convexity are equivalent, even when general preferences are considered. Since Schur convexity is closely related to having a willingness to accept information and since quasi-convexity is closely related to having a preference for early resolution of the uncertainty about which information system prevails, then it follows that the equivalence implies that decision makers prefer more information to less if, and only if, they prefer early resolution of uncertainty to later resolution.
Similar content being viewed by others
References
Blackwell, D.: 1951, ‘Comparison of Experiments’, in J. Neyman (Ed.),Proceedings, Second Berkeley Symposium on Mathematical Statistics and Probability, University of California Press, pp. 93–102.
Chew, S. H. and Epstein, L. G.: 1989, ‘The Structure of Preferences and Attitudes Towards the Timing of the Resolution of Uncertainty’,International Economic Review,30, 103–117.
Chew, S. H. and Mao, M. H.: 1985, ‘A Schur concave Characterization of Risk Aversion for Nonlinear, Nonsmooth continuous Preferences’, The Johns Hopkins University Working Papers in Economics No. 157.
Dekel, E.: 1989, ‘Asset Demand without the Independence Axiom’,Econometrica,57, 163–169.
Epstein, L. G.: 1990, ‘Behavior under Risk: Recent Developments in Theory and Applications’, inAdvances in Economic Theory, forthcoming.
Fishburn, P. C.: 1988,Nonlinear Preferences and Utility Theory, Johns Hopkins University Press.
Hilton, R. W.: 1990, ‘Failure of Blackwell's Theorem under Machina's Generalization of Expected-Utility Analysis without the Independence Axiom’,Journal of Economic Behavior and Organization,13, 233–244.
Karni, E. and Schmeidler, D.: 1990, ‘Utility Theory and Uncertainty’, inHandbook of Mathematical Economics IV, W. Hildenbrand and H. Sonnenschein (Eds.), North Holland Pub. Co., forthcoming.
Machina, M.: 1987, ‘Choice under Uncertainty: Problems Solved and Unsolved’,Journal of Economic Perspectives,1, 121–154.
Marshall, A. W. and Olkin, I.: 1979,Inequalities: Theory of Majorization and Its Applications, Academic Press.
Newman, D. P.: 1980, ‘Prospect Theory: Implications for Information Evaluation’,Accounting Organizations and Society,5, 217–230.
Segal, U.: 1990, ‘Two-stage Lotteries without the Reduction Axiom’,Econometrica,58, 349–377.
Wakker, P.: 1988, ‘Nonexpected Utility as Aversion of Information’,Journal of Behavioral Decision Making,1, 169–175.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Safra, Z., Sulganik, E. Schur convexity, quasi-convexity and preference for early resolution of uncertainty. Theor Decis 39, 213–218 (1995). https://doi.org/10.1007/BF01078986
Issue Date:
DOI: https://doi.org/10.1007/BF01078986