On the Concept of the Value of Information in Competitive Situations

Abstract

In this paper a game theoretic model is used to extend information value theory, as developed in decision analysis, to competitive situations. One of the main differences between competitive and noncompetitive situations is that part of the environment (namely the competitors) may be modified as a result of experimentation in another part of the environment (nature). Hence, states of the world and actions may no more be independent. Nevertheless, we shall show how the classical concept may be generalized to cover competitive situations.