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ArxivPaper: All Substitution Is Local

# ArxivPaper: All Substitution Is Local When does consulting one information source raise the value of another, and when does it diminish it? We study this question for Bayesian decision-makers facing finite actions. The interaction decomposes into two opposing forces: a complement force, measuring how one source moves beliefs to where the other becomes more useful, and a substitute force, measuring how much the current decision is resolved. Their balance obeys a localization principle: substitution requires an observation to cross a decision boundary, though crossing alone does not guarantee it. Whenever posteriors remain inside the current decision region, the substitute force vanishes, and sources are guara...

Source: forge://neo4j/scholarly/ArxivPaper

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