The price for information about probabilities and its Relation with capacities - INRAE - Institut national de recherche pour l’agriculture, l’alimentation et l’environnement
Article Dans Une Revue Theory and Decision Année : 2012

The price for information about probabilities and its Relation with capacities

Résumé

In this article, ambiguity attitude is measured through the maximum price a decision maker is willing to pay to know the probability of an event. Two problems are examined in which the decision maker faces an act: in one case buying information implies playing a lottery, while, in the other case, buying information gives also the option to avoid playing the lottery. In both decision settings, relying on the Choquet expected utility model, we study how the decision maker’s risk and ambiguity attitudes affect the reservation price for ambiguity resolution. These effects are analyzed for different levels of ambiguity of the act. Operating instructions for the elicitation of the reservation price for ambiguity resolution in an experimental setting are provided at the end of the article.

Dates et versions

hal-02645677 , version 1 (29-05-2020)

Identifiants

Citer

Giuseppe Attanasi, Aldo Montesano. The price for information about probabilities and its Relation with capacities. Theory and Decision, 2012, 73 (1), pp.125-160. ⟨10.1007/s11238-011-9271-6⟩. ⟨hal-02645677⟩
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