|
EconStor >
Northwestern University >
Kellogg School of Management - Center for Mathematical Studies in Economics and Management Science, Northwestern University >
Discussion Papers, Kellogg School of Management, Northwestern University >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/59659
|
| | |
| Title: | | When are signals complements or substitutes?  |
| Authors: | | Börgers, Tilman Hernando-Veciana, Angel Kröhmer, Daniel |
| Issue Date: | | 2010 |
| Series/Report no.: | | Discussion Paper, Center for Mathematical Studies in Economics and Management Science 1488 |
| Abstract: | | The paper introduces a notion of complementarity (substitutability) of two signals which requires that in all decision problems each signal becomes more (less) valuable when the other signal becomes available. We provide a general characterization which relates complementarity and substitutability to a Blackwell comparison of two auxiliary signals. In a setting with a binary state space and binary signals, we find an explicit characterization that permits an intuitive interpretation of complementarity and substitutability. We demonstrate how these conditions extend to more general settings. |
| Subjects: | | Complementarity substitutability value of information Blackwell ordering |
| JEL: | | C00 C44 D81 D83 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Discussion Papers, Kellogg School of Management, Northwestern University
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/59659
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|