A method is developed for assessing the monetary value of additional information in the framework of a response process which involves interaction between controlled and uncontrolled factors. The method is illustrated through an analysis of the value of a rainfall predictor in determining...

A model is developed from decision theory for evaluating probabilistic information, especially for decision makers who are risk averse. The value of information to such a decision maker is disaggregated into mean and variance effects. It is shown that the degree of risk aversion of the decision...