Santos-Pinto, Luís (2003): Asymmetries in information processing in a decision theory framework.
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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.
|Item Type:||MPRA Paper|
|Institution:||Universidade Nova de Lisboa|
|Original Title:||Asymmetries in information processing in a decision theory framework|
|Keywords:||Information Processing; Decision Theory|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty
A - General Economics and Teaching > A1 - General Economics > A12 - Relation of Economics to Other Disciplines
|Depositing User:||Luís Santos-Pinto|
|Date Deposited:||09. May 2007|
|Last Modified:||17. Feb 2013 19:15|
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