Hostname: page-component-cd9895bd7-jn8rn Total loading time: 0 Render date: 2024-12-27T08:44:25.690Z Has data issue: false hasContentIssue false
  • English
  • Français

The Demand for Information and the Distribution of Income

Published online by Cambridge University Press:  27 July 2009

Kenneth J. Arrow
Kenneth J. Arrow
Affiliation:
Department of Economics and OperationsResearch Stanford University Stanford, California
Get access Rights & Permissions [Opens in a new window]

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.

Type
Articles
Information
Probability in the Engineering and Informational Sciences , Volume 1 , Issue 1 , January 1987 , pp. 3 - 13
Copyright
Copyright © Cambridge University Press 1987

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Arrow, K. J. (1965). Aspects of the Theory of Risk-Bearing, Helsinki: Yrjö Jahnssonin säätio.Google Scholar
Arrow, K. J. (1971). Essays in the Theory of Risk-Bearing. Amsterdam: North-Holland, p. 63–65, 110–111.Google Scholar
Becker, G. S. (1967). Human Capital and the Personal Distribution of Income: An Analytical Approach. Ann Arbor, Michigan: Institute of Public Administration, University of Michigan.Google Scholar
Menger, K. (1934). Das Unsicherheitsmoment in der Wertlehre. Zeitschrift für Nationalökonomie 51: 439–485.Google Scholar
Pratt, J. W. (1964). Risk aversion in the small and in the large. Econometrica 32: 122–136.CrossRefGoogle Scholar
Yitzakhi, S. [forthcoming] On the relation between return and income. Quarterly Journal of Economics.Google Scholar