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The Role of Learning in Investment Decisions

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  • Gray, Richard S.

Abstract

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.

Suggested Citation

  • Gray, Richard S., 1990. "The Role of Learning in Investment Decisions," 1990 Annual meeting, August 5-8, Vancouver, Canada 261490, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea90:261490
    DOI: 10.22004/ag.econ.261490
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    References listed on IDEAS

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