Search results for "Value of information"
showing 10 items of 13 documents
Assessing optimal water quality monitoring network in road construction using integrated information-theoretic techniques
2020
Author´s accepted manuscript. The environmental impacts of road construction on the aquatic environment necessitate the monitoring of receiving water quality. The main contribution of the paper is developing a feasible methodology for spatial optimization of the water quality monitoring network (WQMN) in surface water during road construction using the field data. First, using the Canadian Council of Ministers of the Environment (CCME) method, the water quality index (WQI) was computed in each potential monitoring station during construction. Then, the integrated form of the information-theoretic techniques consists of the transinformation entropy (TE), and the value of information (VOI) we…
Value of information in multiple criteria decision making: an application to forest conservation
2019
Abstract Developing environmental conservation plans involves assessing trade-offs between the benefits and costs of conservation. The benefits of conservation can be established with ecological inventories or estimated based on previously collected information. Conducting ecological inventories can be costly, and the additional information may not justify these costs. To clarify the value of these inventories, we investigate the multiple criteria value of information associated with the acquisition of improved ecological data. This information can be useful when informing the decision maker to acquire better information. We extend the concept of the value of information to a multiple crite…
Grading investment diversification options in presence of non-historical financial information
2021
Modern portfolio theory deals with the problem of selecting a portfolio of financial assets such that the expected return is maximized for a given level of risk. The forecast of the expected individual assets’ returns and risk is usually based on their historical returns. In this work, we consider a situation in which the investor has non-historical additional information that is used for the forecast of the expected returns. This implies that there is no obvious statistical risk measure any more, and it poses the problem of selecting an adequate set of diversification constraints to mitigate the risk of the selected portfolio without losing the value of the non-statistical information owne…
The value of perfect and imperfect information in lake monitoring and management.
2020
Highlights • Knowledge on the value of monitoring can assist decision-making in lake management. • We calculate value of perfect information theoretically. • We estimate value of imperfect information with Monte Carlo type of approach. • Generally, monitoring is profitable to invest in if VOI exceeds the cost. • Additional monitoring is profitable even if the lake is in good condition a priori. Uncertainty in the information obtained through monitoring complicates decision making about aquatic ecosystems management actions. We suggest the value of information (VOI) to assess the profitability of paying for additional monitoring information, when taking into account the costs and benefits of…
The value of local climate and weather information: an economic valuation of the decentralised meteorological provision in Kenya
2020
The development of Sub-Saharan Africa will become increasingly constrained by the acute climate sensitivity of livelihood practices. Weather and climate services can improve climate risks to development by informing plans and decisions that ultimately reduce losses/maximize beneficial opportunities from climate variability and change. Yet, such services are typically highly aggregated, and notoriously difficult to communicate, especially to smallholder farmers and pastoralists where the need is greatest. Kenya Meteorological Department (KMD) are decentralizing service provision, and in so doing, offering disaggregated, contextualized, and more easily understandable localized weather and sea…
Controlling risk through diversification in portfolio selection with non-historical information
2017
We deal with the portfolio selection problem for investors having information on the expected returns of the assets based not only on historical data. In the absence of a way of measuring the risk of non-historical information, the investor may try to adjust it through the consideration of a suitable set of diversification constraints. With this aim, we relate the concept of value of information (recently introduced by Kao and Steuer) to a qualitative subjective measure of the investor’s level of confidence in his/her non-historical information. As an illustration, we analyze the behavior of the proposed indicator in the Spanish IBEX35 index for risk, upper bound, semicontinuous variable an…
Benefits of Employees Social Network Sites Profiles for Job Applicants
2019
This paper investigates the benefits of social network site (SNS) profiles of employees for candidates. The research is interested in identifying the value of information contained within SNS profiles to applicants. The knowledge that potential candidates use SNS profiles during the employment seeking process is important for companies to know how to use such profiles successfully. The digitalization and change of the labor market are new circumstances for companies. That needs innovative and new solutions to support the employment seeking process. The research used an online survey for target group with 362 respondents per analyzed item. This research provides a deeper insight into the ope…
Efficient spatial designs using Hausdorff distances and Bayesian optimization
2021
An iterative Bayesian optimisation technique is presented to find spatial designs of data that carry much information. We use the decision theoretic notion of value of information as the design criterion. Gaussian process surrogate models enable fast calculations of expected improvement for a large number of designs, while the full-scale value of information evaluations are only done for the most promising designs. The Hausdorff distance is used to model the similarity between designs in the surrogate Gaussian process covariance representation, and this allows the suggested algorithm to learn across different designs. We study properties of the Bayesian optimisation design algorithm in a sy…
Wartość informacji w systemie informacyjnym w ocenie jej jakości
2018
The purpose of the article is to determine to what extent and how to evaluate the value of information available in the information system when assessing its quality. Such an evaluation, especially for systems operating on the Internet, is absolutely necessary because of the constant and rapid growth of the information resources available there, bearing the unnecessary economic costs of their poor quality and related to that negative social phenomena. The quality of information is a multidimensional category and requires evaluation of great number of different attributes. Are there among conceptual models for evaluating the quality of information also such that require evaluating the value …
Environmental taxation, information precision, and information sharing
2022
We analyze how environmental taxes should be optimally levied when the regulators and firms face costs uncertainties in a Stackelberg-Cournot game. We allow linear-quadratic payoffs functions coupled with an affine information structure encompassing common and private information with noisy signals. In the first period, the regulator chooses the intensity of emissions taxes in order to reduce externalities. In the second period, facing industry-related and firm-specific shocks, firms compete in the marketplace as Cournot rivals and choose outputs. We show that, given costs uncertainties with non-uniform quality of signals across firms, the regulator sets differentiated tax policy. We also e…