The claim was made in the chapter that information always has positive value. What do you think of this? Can you imagine any situation in which you would prefer not to have some unknown information revealed?
a. Suppose you have just visited your physician because of a pain in your abdomen. The doctor has indicated some concern and has ordered some tests whose results the two of you are expecting in a few days. A positive test result will suggest that you may have a life-threatening disease, but even if the test is positive, the doctor would want to confirm it with further tests. Would you want the doctor to tell you the outcome of the test? Why or why not?
b. Suppose you are selling your house. Real-estate transaction laws require that you disclose what you know about significant structural defects. Although you know of no such defects, a buyer insists on having a qualified engineer inspect the house. Would you want to know the outcome of the inspection? Why or why not?
c. Suppose you are negotiating to purchase an office building. You have a lot of experience negotiating commercial real-estate deals, and your agent has explained this to the seller, who is relatively new to the business. As a result, you expect to do very well in this negotiation. Because of the unique circumstance of the building, your agent has suggested obtaining an appraisal of the property by a local expert. You know exactly how you would use this information; it would provide an upper bound on what you are willing to pay. This fact is also clear to the seller, who will know whether you obtained the appraisal but will only find out the appraised value if you elect to reveal it. Would you obtain the appraisal? Why or why not?