Skip to main content Accessibility help

The Demand for Information and the Distribution of Income

  • Kenneth J. Arrow (a1)

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.

Hide All
Arrow, K. J. (1965). Aspects of the Theory of Risk-Bearing, Helsinki: Yrjö Jahnssonin säätio.
Arrow, K. J. (1971). Essays in the Theory of Risk-Bearing. Amsterdam: North-Holland, p. 6365, 110111.
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.
Menger, K. (1934). Das Unsicherheitsmoment in der Wertlehre. Zeitschrift für Nationalökonomie 51: 439485.
Pratt, J. W. (1964). Risk aversion in the small and in the large. Econometrica 32: 122136.
Yitzakhi, S. [forthcoming] On the relation between return and income. Quarterly Journal of Economics.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Probability in the Engineering and Informational Sciences
  • ISSN: 0269-9648
  • EISSN: 1469-8951
  • URL: /core/journals/probability-in-the-engineering-and-informational-sciences
Please enter your name
Please enter a valid email address
Who would you like to send this to? *


Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed