Investment in Information Acquisition *
نویسندگان
چکیده
This paper presents a simple model in which a community must decide on the amount of real investment and investment in information so as to maximise the expected utility of consumption over two periods. It is shown that under conditions involving the product of the elasticity of the marginal utility of consumption and the elasticity of the production function that optimal real investment is either a monotone function of the information or is independent of it. In the former case information is of value and it is optimal to invest a positive amount in information acquisition. In the latter case information has no value and society devotes no resources to information acquisition.
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تاریخ انتشار 1985