The Demand for Information and the Distribution of Income
- 1 January 1987
- journal article
- research article
- Published by Cambridge University Press (CUP) in Probability in the Engineering and Informational Sciences
- Vol. 1 (1) , 3-13
- https://doi.org/10.1017/s0269964800000243
Abstract
Investors can increase their payoff by acquiring information on rates of return. The value of the information is greater, the greater the amount to be invested. Therefore, information purchased and consequently the expected rate of return increases with initial wealth, and the distribution of final wealth is more unequal than that of initial wealth.Keywords
This publication has 2 references indexed in Scilit:
- Risk Aversion in the Small and in the LargeEconometrica, 1964
- Das Unsicherheitsmoment in der WertlehreJournal of Economics, 1934