Information acquisition and welfare

Arbeitspapier

We study information acquisition in a flexible framework with strategic complementarity or substitutability in actions and a rich set of externalities that are responsible for possible wedges between the equilibrium and the efficient acquisition of information. First, we relate the (in)efficiency in the acquisition of information to the (in)efficiency in the use of information and explain why efficiency in the use does not guarantee efficiency in the acquisition. Next, we show how the acquisition of private information affects the social value of public information (i.e., the comparative statics of equilibrium welfare with respect to the quality of public information). Finally, we illustrate the implications of our results in a few applications that include beauty contests, monetary economies with price-setting complementarities, and economies with negative production externalities.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Paper ; No. 1554

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Noncooperative Games ; Externalities ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General
• Thema: endogenous information ; strategic complementarity / substitutability ; externalities ; efficiency ; welfare ; endogenous information ; strategic complementarity/substitutability ; externalities ; efficiency ; welfare

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Colombo, Luca ; Femminis, Gianluca ; Pavan, Alessandro
• Ereignis: Veröffentlichung
• (wer): Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science
• (wo): Evanston, IL
• (wann): 2012

Weitere Informationen

• Handle: http://hdl.handle.net/10419/97241
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ