Adding Decision Problem Makes Information More Valuable

TL;DR

This paper demonstrates that the value of information in decision-making increases when an independent, parallel decision problem is added, providing a clear criterion for when information becomes more valuable.

Contribution

It establishes a necessary and sufficient condition for when adding decision problems enhances the value of information, specifically through the addition of independent, parallel decision problems.

Findings

Adding an independent, parallel decision problem increases information value.

The value of information comparison is uniform across information structures.

Provides a characterization of when information becomes more valuable.

Abstract

We consider decision-making under incomplete information about an unknown state of nature. We show that a decision problem yields a higher value of information than another, uniformly across information structures, if and only if it is obtained by adding an independent, parallel decision problem.