MAINTENANCE EN COURS / SITE UNDER MAINTENANCE

Une opération de maintenance est en cours: les résultats de recherches et les exportations peuvent être incohérent.
Site under maintenance: search & exportation results could be inconsistent.
 

Correlated risks and the value of information

Eeckhoudt, Louis;Thomas, Alban;Treich, Nicolas
(2011) Journal of Economics — Vol. 102, n° 1, p. 77-87 (2011)

Files

Eeckhoudtreprint.pdf
  • Closed Access
  • Adobe PDF
  • 147.91 KB
Request a copy

Details

Authors
  • Eeckhoudt, LouisUCLouvain
    Author
  • Thomas, AlbanToulouse School of Economics
    Author
  • Treich, NicolasToulouse School of Economics
    Author
Abstract
A decision maker faces two correlated risks and can obtain information on only one of them. Intuition suggests that the existence of a high correlation (in absolute value) between the risks should increase total information value. Indeed in such a case information about one risk induces a relevant information on the other one. Using a simple example, we show that this intuition is often correct, but that it can be mitigated by other factors.
Affiliations

Citations

  • APA
  • Chicago
  • FWB

Eeckhoudt, L., Thomas, A., & Treich, N. (2011). Correlated risks and the value of information. Journal of Economics, 102(1), 77-87. https://doi.org/10.1007/s00712-010-0169-5 (Original work published 2011)