Measures of the Value of Information
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This chapter investigates the measurement of the changes in the DM’s wellbeing that result from making a prior decision, processing a message, or incorporating an information source. To do this it is convenient to view a decision as a commodity, making it meaningful to consider the buying and selling prices for decisions with and without the incorporation of information.
KeywordsUtility Function Risk Premium Expected Utility Reservation Price Certainty Equivalent
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