nicholson微观经济理论（答案+PPT+习题库）-ch19.pptVIP

Chapter 9 THE ECONOMICS OF INFORMATION Properties of Information Information is not easy to define it is difficult to measure the quantity of information obtainable from different actions there are too many forms of useful information to permit the standard price-quantity characterization used in supply and demand analysis Properties of Information Studying information also becomes difficult due to some technical properties of information it is durable and retains value after its use it can be nonrival and nonexclusive in this manner it can be considered a public good The Value of Information In many respects, lack of information does represent a problem involving uncertainty for a decision maker the individual may not know exactly what the consequences of a particular action will be Better information can reduce uncertainty and lead to better decisions and higher utility The Value of Information Assume an individual forms subjective opinions about the probabilities of two states of the world “good times” (probability = ?g) and “bad times” (probability = ?b) Information is valuable because it helps the individual revise his estimates of these probabilities The Value of Information Assume that information can be measured by the number of “messages” (m) purchased ?g and ?b will be functions of m The Value of Information The individual’s goal will be to maximize E(U) = ?gU(Wg) + ?bU(Wb) subject to I = pgWg + pbWb + pmm We need to set up the Lagrangian L = ?gU(Wg) + ?bU(Wb) + ?(I-pgWg-pbWb-pmm) The Value of Information First-order conditions for a constrained maximum are: The Value of Information First-order conditions for a constrained maximum are: The Value of Information The first two equations show that the individual will maximize utility at a point where the subjective ratio of expected marginal utilities is equal to the price ratio (pg /pb) The last equation shows the utility-maximizing level of information to buy Asymmetry of Information The level of informat