However, information is perceived as only
partially reliable in the sense that there is a perceived probability that a received
message claims that xil = 1 where in fact xil = 0, and vice versa. Figure 3 shows
the expected information utility for varying levels of magnitude of the probabilities
of receiving incorrect messages P (I : xil = 1 |xil = 0 ), denoted P
1
false, and
P (I : xil = 0 |xil = 1 ), denoted P
0
false. It is directly seen that the expected utility
of information increases as the perceived probability of receiving incorrect
messages approaches zero. As the perceived probability of receiving incorrect
messages increases, expected information utility drops, as would be expected.
Note that should the perceived probability of receiving incorrect messages approach
1, information value would rise again. This is logical, as consumers then
know that when receiving a message, they may derive the true value of xil with
certainty: when a message I : xil = 0 is received, the updated perception consists
of knowing with certainty that xil = 1. Informati