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In economics, perfect information (sometimes referred to as "no hidden information") is a feature of perfect competition. With perfect information in a market, all consumers and producers have complete and instantaneous knowledge of all market prices, their own utility, and own cost functions.
The expected value of perfect information analysis tries to measure the expected cost of that uncertainty, which “can be interpreted as the expected value of perfect information (EVPI), since perfect information can eliminate the possibility of making the wrong decision” at least from a theoretical perspective. [2]
VoI is sometimes distinguished into value of perfect information, also called value of clairvoyance (VoC), and value of imperfect information. They are closely related to the widely known expected value of perfect information (EVPI) and expected value of sample information (EVSI). Note that VoI is not necessarily equal to "value of decision ...
Perfect factor mobility: In the long run factors of production are perfectly mobile, allowing free long term adjustments to changing market conditions. This allows workers to freely move between firms. [9] Perfect information: All consumers and producers know all prices of products and utilities they would get from owning each product. This ...
A game with complete information may or may not have perfect information, and vice versa. Examples of games with imperfect but complete information are card games, where each player's cards are hidden from other players but objectives are known, as in contract bridge and poker , [ 4 ] [ 5 ] if the outcomes are assumed to be binary (players can ...
Negligible transaction costs [1] and therefore also perfect information, Every asset in every possible state of the world has a price. [2] In such a market, the complete set of possible bets on future states of the world can be constructed with existing assets without friction. Here, goods are state-contingent; that is, a good includes the time ...
The additional information obtained from the sample may allow them to make a more informed, and thus better, decision, thus resulting in an increase in expected utility. EVSI attempts to estimate what this improvement would be before seeing actual sample data; hence, EVSI is a form of what is known as preposterior analysis .
Backward induction can be applied to only limited classes of games. The procedure is well-defined for any game of perfect information with no ties of utility. It is also well-defined and meaningful for games of perfect information with ties. However, in such cases it leads to more than one perfect strategy.