Objective
We study decision making informed by data. We examine the relation between objective information provided by data and decision maker's beliefs about uncertain outcomes. We also study the evaluation of information by economic agents. We then apply the derived theoretical insights to models of technological adaptation to climate change and to a study of market participation and market structure.
We start by providing a representation of preferences when decisions are informed by data. The representation captures the idea that information from data is perceived as ambiguous. We identify the decision maker's beliefs which combine the objective information in the data (frequency, number and type of observations) with the decision maker's subjective characteristics (perception of similarity and perception of ambiguity). We determine the decision maker's degrees of optimism and pessimism and relate them to his preferences for precision of information. This allows us to derive the value of information.
Next, we apply the representation to a model of technological adaptation in response to a change in climate conditions. We study the role of agent heterogeneity in the process of adoption. By experimenting with new technologies, optimists provide the public good of information, but also obtain lower average returns. Pessimists use this information to choose the optimal technology in the long-run. When the share of optimists is low, steady states are inefficient. We study the impact of subsidies for early adopters and provision of additional information on successful adoption.
The representation is also used to model market participation decisions when markets differ w.r.t. the quality of information they provide. Agents self-select into markets based on their preferences for information precision. This leads to distinct dynamics of prices and allocations in markets providing different information. We study implications for the regulation of information provision in markets.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: https://op.europa.eu/en/web/eu-vocabularies/euroscivoc.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: https://op.europa.eu/en/web/eu-vocabularies/euroscivoc.
- natural sciences earth and related environmental sciences atmospheric sciences climatology climatic changes
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Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
FP7-PEOPLE-2011-CIG
See other projects for this call
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
MC-CIG - Support for training and career development of researcher (CIG)
Coordinator
95011 Cergy-Pontoise
France
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.