Information acquisition processes and their continuity: Transforming uncertainty into risk

Abstract

We propose a formal approach to the problem of transforming uncertainty into risk via information revelation processes. Abstractions and formalizations regarding information acquisition processes are common in different areas of information sciences. We investigate the relationships between the way information is acquired and the continuity properties of revelation processes. A class of revelation processes whose continuity is characterized by how information is transmitted is introduced. This allows us to provide normative results regarding the continuity of the information acquisition processes of decision makers (DMs) and their ability to formulate probabilistic predictions within a given confidence range.