An information transaction entails the purchase of information. Formally, it consists of an information structure … together with a price. We develop an index of the appeal of information transactions, which is derived as a dual to the agent …’s preferences for information. The index of information transactions has a simple analytic characterization in terms of the relative …

An information transaction entails the purchase of information. Formally, it consists of an information structure … together with a price. We develop an index of the appeal of information transactions, which is derived as a dual to the agent …'s preferences for information. The index of information transactions has a simple analytic characterization in terms of the relative …

can purchase information about the state of nature in the form of an information structure. Given his prior, information … structure $\alpha$ is more informative than information structure $\beta$ if, whenever he is willing to buy $\beta$ at some … price, he is also willing to buy $\alpha$ at that price. We show that this informativeness ordering is complete and is …

global convergence of the EM algorithm is attainable are provided in an information-theoretic context by interpreting the EM …

In this paper, we consider a security market in which two investors on different information levels maximize their … information flow, the insider possesses from the beginning extra information about the outcome of some random variable G, e … expected logarithmic utility in terms of a relative entropy. This allows us to provide simple conditions on G for the …