Can the fundamental flaws in Info-Gap decision theory be fixed?
Answer-47: I can’t see how this can be done. The only way to amend Info-Gap decision theory is to overhaul its domain of operation. That is, we would have to assume that the estimate û is of good quality, namely reliable, and that the true value of u is in the neighborhood of û. This would mean in turn that we would have to redefine Info-Gap a Maximin methodology that is designed for decision-making under very mild uncertainty. However, this would fly in the face of Ben-Haim’s (2007, p. 2) position: Info-gap theory is useful precisely in those situations where our best models and data are highly uncertain, especially when the horizon of uncertainty is unknown. In contrast, if we have good understanding of the system then we don’t need info-gap theory, and can use probability theory or even completely deterministic models. It is when we face severe Knightian uncertainty that we need info-gap theory. In a word, to fix Info-Gap we would have to remove “severe” from “Severe Uncertainty”, b
