Search arXiv⌕ Search

arXiv · 2609.35062

Blackwell Boundaries

Abstract

We give a finite simplex theorem. When the number of states equals the number of source signals and the source posterior likelihood-ratio vectors form a simplex, Blackwell dominance is characterized by a universal barycentric-coordinate condition. We also give an explicit countable-state, countable-signal diagnostic-monitor theorem with a closed-form universal criterion and a closed-form garbling; tensorization yields dominance at every sample size. Finally, we provide a three-state, two-signal counterexample to the sufficiency conjectured by Mu, Pomatto, Strack, and Tamuz for their many-state moment-generating-function conditions for large-sample Blackwell dominance. The pair satisfies strict comparisons on both parameter domains, all ordered Kullback-Leibler inequalities, bounded likelihood ratios and pairwise genericity, but dominance fails at every positive sample size. The finite theorem, obstruction, and continuum inequalities are verified in Lean 4.30 with Mathlib; the countable diagnostic proof is given analytically.

Explore related subjects

Keep this discovery

Explore connections, maps & timelines

BibTeXRIS

Shuo Li Liu. 2026-09-28. Blackwell Boundaries. https://arxiv.org/abs/2609.35062

Cite the original work for its findings. Save a collection to share your selection of sources.

KEEP EXPLORING

Related papers

Information Design for Differential Privacy

Firms and statistical agencies must protect the privacy of the individuals whose data they collect, analyze, and publish. These organizations often do so by using publication mechanisms that satisfy differential privacy. We consider the problem of choosing such a mechanism to maximize the value of its output to end users. We show that mechanisms which add conditionally independent noise to the statistic of interest -- like most of those used in practice -- are never without loss of generality when the statistic is a sum or average of magnitude data (e.g., income). But conversely, adding conditionally independent noise is always optimal when the statistic is a count of data entries with a certain characteristic, and the underlying database is drawn from a symmetric distribution (e.g., if individuals' data are i.i.d.). When, in addition, data users view higher actions and higher values of the statistic as complementary (e.g., their payoffs are supermodular), we show that the simple geometric mechanism is always optimal by using a novel comparative static that ranks information structures according to their usefulness in monotone decision problems.

econ.TH↗

Comparative Statics of Information Acquisition and Risk Aversion

This paper studies how willingness to pay for information depends on risk aversion. We model a decision maker who faces background risk and can acquire information before choosing from a menu of assets. We show that the comparative statics depend on two factors. The first is whether available assets constitute an investment menu, whose payoffs are procyclical with background wealth, or an insurance menu, whose payoffs are countercyclical. The second factor is the tail geometry of background risk. We show that willingness to pay for information decreases with risk aversion for investment menus when the density of background risk is log-concave, and that it increases with risk aversion for insurance menus when background risk is downward-log-convex. The proofs compare the distributions of terminal wealth with and without information. They develop new aggregation arguments for state-dependent single-crossing comparisons. We also construct reversals under strictly log-convex tails for investment menus and super-exponential left tails for insurance menus.

econ.TH↗

Contracting for Information: Heterogeneous Costs and Investment Opportunities

A principal faces a decision problem under uncertainty and can contract with a researcher to provide relevant information. The cost of acquiring information is only known to the researcher, and, moreover, by privately making an investment the researcher can reduce their expected cost. We characterize optimal contracts by reducing the problem to information design with cost constraints. The principal induces investment below a cutoff in its sunk cost. With two cost types, investment may be underprovided but is never excessive relative to the first best. With more types, the cutoff property survives but overinvestment can occur. Investment incentives also reshape information acquisition: optimal experiments may need to generate more distinct beliefs than there are possible states, and their design can be sensitive to the principal's initial beliefs.

econ.TH↗