The Role of Learning in Investment Decisions

If information arrives over time, there is some value in waiting to make an investment involving a sunk cost. Recent work, which specifies the nature of the stochastic process for prices, has shown the standard investment rules are often quite wrong. I relate this emerging body of literature to previous work in other areas of economics which has examined problems where the prospect of learning is important.


Issue Date:
Jul 23 1990
Publication Type:
Conference Paper/ Presentation
Language:
English
Total Pages:
20




 Record created 2017-08-04, last modified 2017-08-29

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