RT Journal Article
T1 The optimal sequential information acquisition structure: A rational utility-maximizing perspective
A1 Di Caprio, Debora
A1 Tavana, Madjid
A1 Santos Arteaga, Francisco Javier
AB We consider a rational utility maximizer decision maker (DM) who must gather two pieces of information from a set of multidimensional products before making a choice. We analyze the resulting sequential information acquisition process where the DM tries to find the best possible product subject to his information acquisition constraint. In addition, we introduce publicly observable signals that allow the DM to update his expected utility functions following a standard Bayesian learning rule. Even though it seems intuitively plausible to assume that the transmission of positive and credible information may lead DMs to accept any product signaled more eagerly, this paper illustrates how transmitting credible positive information is not sufficient to decrease the rejection probability faced by the information sender on its set of products. A significant difference in product rejection probabilities arises depending on the characteristic on which signals are issued, as will be illustrated numerically for both risk-neutral and risk-averse DMs.
SN 0307-904X
YR 2014
FD 2014-07-01
LK https://hdl.handle.net/20.500.14352/114003
UL https://hdl.handle.net/20.500.14352/114003
LA eng
NO Di Caprio, D., Santos-Arteaga, F. J., & Tavana, M. (2014). The optimal sequential information acquisition structure: A rational utility-maximizing perspective. Applied Mathematical Modelling, 38(14), 3419–3435. 10.1016/j.apm.2013.12.003
DS Docta Complutense
RD 17 abr 2025