The Validity of Information in Decision Making

It is the target of management to raise the management utilities, and the evaluation of information is also the emphasis of management. The value of information is always related to its environment called context. In the process of decision making, the players use some information, form their own beliefs, and maximize their utilities in a certain context. With utility comparison between the different information conditions, the paper points out that, in a certain context, information will bring the players more utilities if it makes the payers' beliefs approaching to the facts. In special context, information enhances the income, while it increases the cost. Information may be valid or invalid. Information is valid only when the increment of income is greater than that of cost.