Efficient information acquisition with heterogeneous agents

C-Tier
Journal: Economics Letters
Year: 2021
Volume: 207
Issue: C

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In a Gaussian-quadratic economy with dispersed information, we correct the inefficiency in information acquisition by making the tax rate on agents own actions contingent on actions themselves. This aligns individual and social evaluations of information quality. Our policy is robust to considering heterogeneous unobservable costs in information acquisition, since agents share a common evaluation of the benefit of information quality.

Technical Details

RePEc Handle
repec:eee:ecolet:v:207:y:2021:i:c:s0165176521003025
Journal Field
General
Author Count
2
Added to Database
2026-01-25