Asymmetries in Information Processing in a Decision Theory Framework

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Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Asymmetries in Information Processing in a Decision Theory Framework
Journal
Theory and Decision
Author(s)
Santos Pinto L.
ISSN
0040-5833
Publication state
Published
Issued date
2009
Peer-reviewed
Oui
Volume
66
Number
4
Pages
317-343
Language
english
Abstract
Research in psychology suggests that some individuals are more sensitive to positive than to negative information while others are more sensitive to negative rather than positive information. I take these cognitive positive-negative asymmetries in information processing to a Bayesian decision-theory model and explore its consequences in terms of decisions and payoffs. I show that in monotone decision problems economic agents with more positive-responsive information structures are always better off, ex ante, when they face problems where payoffs are relatively more sensitive to the action chosen when the state of nature is favorable.
Keywords
Information processing, Decision theory
Web of science
Create date
01/12/2008 21:34
Last modification date
20/08/2019 15:43
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