How Much is Information Worth? If it doesn't change your decision,nothing If it barely changes your decision,not very much So adverse selection problems only matter if the errors are large A small error probably doesn't change what you do And if it does,you are only a little worse off than without the error We are back with the second order of smalls Wyatt v Davis:Was Wyatt negligent for not making sure patients knew the live polio vaccine could give them polio? That depends on how likely the knowledge was to change their decision The court found the annual benefit about equal to the lifetime cost Concluded that the patient might decide against,hence Wyatt was liable My favorite example of why judges should be liable for their errorsHow Much is Information Worth? • If it doesn’t change your decision, nothing • If it barely changes your decision, not very much • So adverse selection problems only matter if the errors are large • A small error probably doesn’t change what you do • And if it does, you are only a little worse off than without the error • We are back with the second order of smalls • Wyatt v Davis: Was Wyatt negligent for not making sure patients knew the live polio vaccine could give them polio? • That depends on how likely the knowledge was to change their decision • The court found the annual benefit about equal to the lifetime cost • Concluded that the patient might decide against, hence Wyatt was liable • My favorite example of why judges should be liable for their errors