Value of Information Lotteries
- 1 June 1967
- journal article
- Published by Institute of Electrical and Electronics Engineers (IEEE) in IEEE Transactions on Systems Science and Cybernetics
- Vol. 3 (1), 54-60
- https://doi.org/10.1109/tssc.1967.300108
Abstract
The essence of decision-making is understanding the economic impact of uncertainty. In this paper a previous discussion of information value theory is extended to illustrate how the availability of information on the uncertain factors of a problem affects the probability density function of profit, the profit lottery. A bidding problem serves to demonstrate the type of calculations required and their implications.Keywords
This publication has 3 references indexed in Scilit:
- Information Value TheoryIEEE Transactions on Systems Science and Cybernetics, 1966
- Dynamic InferenceOperations Research, 1965
- Bayesian Decision Models for System EngineeringIEEE Transactions on Systems Science and Cybernetics, 1965