A THEORETICAL AND EMPIRICAL APPROACH TO THE VALUE OF INFORMATION IN RISKY MARKETS

The theory of the competitive firm under price uncertainty is used to develop a money metric of a producer's willingness to pay for additional information. This concept is extended to the market by formulating ex-ante and ex-post measures of the value of a rational expectations forecast. The empirical feasibility of these measures are demonstrated by application to a simple two equation model of an agricultural market.


Subject(s):
Issue Date:
1984
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/13467
Total Pages:
31
Series Statement:
Staff Paper P84-28




 Record created 2017-04-01, last modified 2017-08-23

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