Related papers: On the Monotonicity of Information Costs
We develop an axiomatic theory of information acquisition that captures the idea of constant marginal costs in information production: the cost of generating two independent signals is the sum of their costs, and generating a signal with…
We study the indirect cost of information from sequential information cost minimization. A key sub-additivity condition, together with monotonicity equivalently characterizes the class of indirect cost functions generated from any direct…
These lecture notes accompany a one-semester graduate course on information and learning in economic theory. Topics include common knowledge, Bayesian updating, monotone-likelihood ratio properties, affiliation, the Blackwell order, cost of…
I establish a translation invariance property of the Blackwell order over experiments, show that garbling experiments bring them closer together, and use these facts to define a cardinal measure of informativeness. Experiment $A$ is…
We introduce an information order on experiments based on weighted garbling, a generalization of the standard notion of garbling. In this order, an experiment is more informative than another if the latter is a weighted garbling of the…
In many classification tasks there is a requirement of monotonicity. Concretely, if all else remains constant, increasing (resp. decreasing) the value of one or more features must not decrease (resp. increase) the value of the prediction.…
This study extends Blackwell's (1953) comparison of information to a sequential social learning model, where agents make decisions sequentially based on both private signals and the observed actions of others. In this context, we introduce…
An agent acquires a costly flexible signal before making a decision. We explore to what degree knowledge of the agent's information costs helps predict her behavior. We establish an impossibility result: learning costs alone generate no…
This arXiv report provides a short introduction to the information-theoretic measure proposed by Chen and Golan in 2016 for analyzing machine- and human-centric processes in data intelligence workflows. This introduction was compiled based…
Two problems are studied in this paper. (1) How much external or internal information cost is required to compute a Boolean-valued function with an error at most $1/2-\epsilon$ for a small $\epsilon$? It is shown that information cost of…
We investigate classical information deficit: a candidate for measure of classical correlations emerging from thermodynamical approach initiated in [Phys. Rev. Lett 89, 180402]. It is defined as a difference between amount of information…
Information and uncertainty are closely related and extensively studied concepts in a number of scientific disciplines such as communication theory, probability theory, and statistics. Increasing the information arguably reduces the…
Information decompositions quantify how the Shannon information about a given random variable is distributed among several other random variables. Various requirements have been proposed that such a decomposition should satisfy, leading to…
This paper introduces a framework for modeling the cost of information acquisition based on the principle of cost-minimization. We study the reduced-form \emph{indirect cost} of information generated by the sequential minimization of a…
Consider a network design application where we wish to lay down a minimum-cost spanning tree in a given graph; however, we only have stochastic information about the edge costs. To learn the precise cost of any edge, we have to conduct a…
In monotone classification, the input is a multi-set $P$ of points in $\mathbb{R}^d$, each associated with a hidden label from $\{-1, 1\}$. The goal is to identify a monotone function $h$, which acts as a classifier, mapping from…
We consider a generalization of rational inattention problems by measuring costs of information through the information radius (Sibson, 1969; Verd\'u, 2015) of statistical experiments. We introduce a notion of attention elasticity measuring…
We show that under mild assumptions, the total value of information to informed traders in the market can be measured by the covariance between price changes and order flow. This covariance captures noise trader losses, which equal informed…
Kolmogorov argued that the concept of information exists also in problems with no underlying stochastic model (as Shannon's information representation) for instance, the information contained in an algorithm or in the genome. He introduced…
We consider the problem of reducing a first-order Markov chain on a large alphabet to a higher-order Markov chain on a small alphabet. We present information-theoretic cost functions that are related to predictability and lumpability, show…