Adjustment Costs from Environmental Change Induced by Incomplete Information and Learning.

The paper begins with the problem of a firm subject to random productivity shocks drawn from a particular distribution. We are concerned with the case whereby the distribution of the shocks changes without the knowledge of the firm. Over time the firm learns about the nature and extent of the change in the distribution of the shock and adjusts, incurring adjustment costs in the process.

MoreLess

Year of publication:	1999
Authors:	Kelly, D.L. ; Kolstad, C.D. ; Mitchell, G.
Subject:	INFORMATION \| COSTS \| LEARNING

More details

Type of publication:	Book / Working Paper
Notes:	43 pages
Classification:	D83 - Search, Learning, Information and Knowledge ; D82 - Asymmetric and Private Information ; D20 - Production and Organizations. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005245548