Information value and efficiency measurement for risk-averse firms

Robert G Chambers () and John Quiggin ()

Journal of Productivity Analysis, 2007, vol. 27, issue 3, pages 197-208

Abstract: This paper has three goals. First, we demonstrate that standard arguments and methods from production and duality analysis can be used to provide a comprehensive and general treatment of the value of information for a risk-averse firm with expected-utility (linear-in-probabilities) preferences and a general stochastic technology. Second, we place bounds on the value of information for a risk-averse firm and relate these bounds to characteristics of the technology and the producer’s preferences. The third and final goal is to derive the implications that information differences can have for measured efficiency differences and to relate the bounds on the value of information to those measured differences. Copyright Springer Science+Business Media, LLC 2007

Keywords: Information value; Efficiency; Productivity; D81; D84; D24; D61 (search for similar items in EconPapers)
Date: 2007
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Persistent link: http://EconPapers.repec.org/RePEc:kap:jproda:v:27:y:2007:i:3:p:197-208

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