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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/14499
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| Title: | ORTHOGONAL INFORMATION STRUCTURES: A MODEL TO EVALUATE THE INFORMATION
PROVIDED BY A SECOND OPINION |
| Authors: | Ahituv, Niv
Ronen, Boaz |
| Keywords: | Information Economics
Information Structures
Value of Information
Decision Models |
| Issue Date: | Jan-1986 |
| Publisher: | Stern School of Business, New York University |
| Series/Report no.: | IS-86-03 |
| Abstract: | The paper discusses the value of information when a number of
independent sources provide information related to a common set of
states of nature. The starting point is the Information Economic model
of Information Structures. The model is augmented to represent
independence of informational sources by means of orthogonality of the
information structures. A new mathematical operator, orthogonal product,
is defined and its properties are probed. It is shown that this operator
maintains some mathematical properties such as closure, association,
unity element, null element, etc. It is demonstrated how the orthogonal
product represents the notion of multi-source information. The paper
proves that an orthogonal product is generally more informative than its
multipliers, namely, if cost is not considered a constraining factor,
then there is a nonnegative value to obtaining a second opinion. The
paper concludes with a numerical example and a discussion on the
applicability of the model of orthogonality. |
| URI: | http://hdl.handle.net/2451/14499 |
| Appears in Collections: | IOMS: Information Systems Working Papers
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