value ofinformation Two competitors, Row and Column, are fighting it out as the only merehants on a remote island. Eaeh has two strategies, and nature will provide one of two states (with equal probability). If state one obtains, the players' payoffs are given below, where Row player has possible choices of up or down and Column of left or right. (The payoffs are denoted x,y -- with x to Row and y to Column.)

left right up 10, 10 0, 12 down 40, -40 2, 2 Conversely, if state two obtains, the players' payoffs are as folIows.

left right up 4,4 down -40,12 10,0 10,10 Thus, if state one obtains, the game aetually played is that in the first matrix; and if Row has ehosen up and Column has ehosen right, their respeetive payoffs are 0 and AppendixLO1