×

Preference for information and dynamic consistency. (English) Zbl 1028.91571

Summary: We provide necessary and sufficient conditions for a dynamically consistent agent always to prefer more informative signals (in single-agent problems). These conditions do not imply recursivity, reduction or independence. We provide a simple definition of dynamically consistent behavior, and we discuss whether an intrinsic information lover (say, an anxious person) is likely to be dynamically consistent.

MSC:

91B44 Economics of information
91B08 Individual preferences
PDFBibTeX XMLCite
Full Text: DOI