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Information source’s reliability

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  • Gerard Mondello

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

Abstract

This article studies the influence of the quality of information sources on the decisions of agents faced with radical uncertainty. It compares the decision-making process of expected utility maximizers and neo-additive Choquet utility maximizers. It shows that the first type of decision-maker will always prefer information provided by an unreliable source, even if its credibility is very low. The second type conditions its choice on its level of aversion to ambiguity, its degree of optimism and its level of confidence in the information source itself. Furthermore, the preferences may also be influenced by the information content.
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Suggested Citation

  • Gerard Mondello, 2023. "Information source’s reliability," Working Papers hal-03926562, HAL.
    • Handle: RePEc:hal:wpaper:hal-03926562
    Note: View the original document on HAL open archive server: https://hal.science/hal-03926562
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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