Blackwell-Monotone Information Costs
<|reference_start|>Blackwell-Monotone Information Costs: A Blackwell-monotone information cost function assigns higher costs to Blackwell more informative experiments. This paper provides simple necessary and sufficient conditions for a cost function to be Blackwell monotone over finite experiments. The key condition involves a system of linear differential inequalities. By using this characterization, we show that when a cost function is additively separable, it is Blackwell monotone if and only if it is the sum of sublinear functions. This identifies a wide range of practical information cost functions. Finally, we apply our results to bargaining and persuasion problems with costly information, broadening and strengthening earlier findings.<|reference_end|>
@article{cheng2024blackwell-monotone,
    title={Blackwell-Monotone Information Costs},
    author={Xiaoyu Cheng and Yonggyun Kim},
    journal={arXiv preprint arXiv:2404.15158},
    year={2024},
    archivePrefix={arXiv},
    eprint={2404.15158},
    primaryClass={econ.TH cs.IT math.IT}
}