by
Hal R. Varian

Venue: | SIGIR Forum |

Citations: | 9 - 0 self |

@ARTICLE{Varian99economicsand,

author = {Hal R. Varian},

title = {Economics and Search},

journal = {SIGIR Forum},

year = {1999},

volume = {33}

}

, Fall, 1999. 1 1 ECONOMIC VALUE OF INFORMATION 2 1 Economic value of information Economists define the (economic) value of information in the context of an optimal choice problem. A consumer is making a choice to maximize expected utility or minimize expected cost. The value of information is the increment in expected utility resulting from the improved choice made possible by better information. Often this can be translated into some monetary equivalent representing how much someone would pay to acquire a given piece of information. (See Laffont [1989], page 61.) To take a very simple example in an IR context, suppose that a user is given two sealed envelopes, one containing $100 the other containing $0. She is allowed to choose one, open it, and keep whatever is inside. To make things simple, suppose that she is risk-neutral, in the sense that she only cares about expected value. In the absence of any information, she would

1321 |
Investment Under Uncertainty
- Dixit, Pindyck
- 1994
(Show Context)
Citation Context ...=5+3d−c/2. 2 2 Hence opening R first is the best strategy if this expression is larger than 6, the payoff from opening the safe box first. After some simple algebra this condition becomes 6d − c ≥ 2. =-=(3)-=- This inequality is stronger than (2), so if opening box R first is optimal, then it is always optimal to continue to the safe box if the payoff from R is zero. In conclusion, the optimal strategy is ... |

564 | The use of MMR, diversity-based reranking for reordering documents and producing summaries
- Carbonell, Goldstein
- 1998
(Show Context)
Citation Context ...t frequency, and so on. In general, given a vector of explanatory variables, X, one can assume that the probability of relevance conditional on X is given by the logistic distribution p(X)= eXβ 1+eXβ =-=(1)-=- and then use maximum likelihood techniques to estimate the vector of parameters β. The logistic parametric form is, of course, only one functional form, and maximum likelihood is only one estimation ... |

496 | Applied nonparametric regression - Härdle - 1990 |

472 | The Economics of Information - Stigler - 1961 |

399 | Reexamining the cluster hypothesis: Scatter/gather on retrieval results - Hearst, Pedersen - 1996 |

73 | Optimal Search for Best Alternative - Weitzman - 1979 |

48 | The Economics of Uncertainty and Information - Laffont - 1989 |

41 |
Probabilistic retrieval based on staged logistic regression
- Cooper, Gey, et al.
- 1992
(Show Context)
Citation Context ...any better than this, she will stop her search and go home happy. Half of the time she will get 0. In this case, she will continue if the net payoff from opening the safe box is positive: 6d − c ≥ 0. =-=(2)-=- Her expected payoff from opening the risky box first and continuing is 1 1 10 + (6d − c)=5+3d−c/2. 2 2 Hence opening R first is the best strategy if this expression is larger than 6, the payoff from ... |

41 | A Theory of Term Weighting Based on Exploratory Data Analysis - Greiff - 1998 |

40 | The Theory of Search - Kohn, Shavell - 1974 |

19 | The Economics of Uncertainty: Selected Topics and Probabilistic Methods - Lippman, McCall - 1981 |

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