English, Article, Journal or magazine article edition: The Value of Preference Information in Agency Relationships. R. Vetschera

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/138846
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Value of Preference Information in Agency Relationships.
Author
  • R. Vetschera
Physical Description
  • preprint
Notes
  • Standard models of agency theory assume that the principal has considerable information about the preferences of the agent. Once this assumption is relaxed, the question arises whether the principal should try to obtain additional information about the agent's preferences. In this paper we introduce the concept of a Value of Preference Information (VPI), which describes the benefits to the principal from obtaining additional information about the agent's preferences. We show analytically that the VPI is non-negative and that the VPI will not decrease when the principal's information structure is refined. Computational methods are used to study factors influencing the VPI. The results of these experiments show a strong relationship between the entropy of the principal's information structure and the VPI. It is thus possible to evaluate an information structure independently of the decision problem delegated to the agent.
  • RePEc:wop:iasawp:ir98107
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment