Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/102629
Authors: 
Cabrales, Antonio
Gossner, Olivier
Serrano, Roberto
Year of Publication: 
2012
Series/Report no.: 
Working Paper, Brown University, Department of Economics 2012-13
Abstract: 
An information transaction entails the purchase of information. Formally, it consists of an information structure together with a price. We develop an index of the appeal of information transactions, which is derived as a dual to the agent's preferences for information. The index of information transactions has a simple analytic characterization in terms of the relative entropy from priors to posteriors, and it also connects naturally with a recent index of riskiness.
Subjects: 
informativeness
information transactions
Kullback-Leibler divergence
relative entropy
decision under uncertainty
investment
Blackwell ordering
JEL: 
C00
C43
D00
D80
D81
G00
G11
Document Type: 
Working Paper

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