Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/127386
Authors: 
Heyen, Daniel
Wiesenfarth, Boris R.
Year of Publication: 
2014
Series/Report no.: 
Discussion Paper Series, University of Heidelberg, Department of Economics 572
Abstract: 
The well-known Blackwell's theorem states the equivalence of statistical informativeness and economic valuableness. Celen (2012) generalizes this theorem, which is well-known for subjective expected utility (SEU), to maxmin expected utility (MEU) preferences. We demonstrate that the underlying definition of the value of information used in Celen (2012) is in contradiction with the principle of recursively defined utility. As a consequence, Celen's framework features dynamic inconsistency. Our main contribution consists in the definition of a value of information for MEU preferences that is compatible with recursive utility and thus respects dynamic consistency.
Subjects: 
Value of information
Maxmin expected utility
Recursive utility
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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