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Orthogonal Information Structures: a Model to Evaluate the Information Provided by a Second Opinion
Niv Ahituv,Boaz Ronen +1 more
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It is proved that an orthogonal product is generally more informative than its multipliers, namely, if cost is not considered a constraining factor, then there is a nonnegativevalue to obtaining a second opinion.Abstract:
The paper discusses the value of information when a numberof independent sources provide information related to acommon set of states of nature.The starting point is the Information Economic model ofInformation Structures. The model is augmented to representindependence of informational sources by means oforthogonality of the information structures.A new mathematical operator, orthogonal product, is definedand its properties are probed. It is shown that thisoperator maintains some mathematical properties such asclosure, association, unity element, null element, etc. Itis demonstrated how the orthogonal product represents thenotion of multi-source information.The paper proves that an orthogonal product is generallymore informative than its multipliers, namely, if cost isnot considered a constraining factor, then there is a nonnegativevalue to obtaining a second opinion.The paper concludes with a numerical example and adiscussion on the applicability of the model oforthogonality.read more
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References
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Combining Probability Distributions from Dependent Information Sources
TL;DR: In the face of uncertainty, all available information should be used to make inferences or decisions as mentioned in this paper, when probability distributions for an uncertain quantity are obtained from experts, models, or models.
Journal ArticleDOI
Combining Expert Judgments: A Bayesian Approach
TL;DR: It is proved that the decision maker should process a calibrated expert's opinion by multiplying the expert's probability assessment by his own prior probability assessment and normalizing, and the existence of a composite probability function which measures the joint information contained in the probability assessments generated by a panel of experts.
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Economics of information systems
TL;DR: A more complete, unifying approach to statistical theory and communication theory is proposed, and it is asked whether convexity conditions required for competitive market equilibrium are satisfied.
Book
Modern production/ operations management
TL;DR: In this paper, the authors discuss the importance of operations management in Corporate Profitability and Competitiveness, and propose a framework for Operations Strategy Formulation and implementing Operations Strategy, which is based on linear programming and simulation analysis.
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Orthogonal information structures—a model to evaluate the information provided by a second opinion
Niv Ahituv,Boaz Ronen +1 more