The factors inefficient allocation of investment between economies

The article deals with the problem of possibility of allocation of investment capital by economies. The situation, when the less effective investors find themselves in more favorable investment climate despite of rationality principle is considered, i.e. there is a situation adverse selection. The model describing investors’ behavior in the economy, characterized by an investment climate of some favorability, is developed. There was considered a behaviour of investors–maximizers and investors–satisficers. 2 cases are modeled: independence of the economic climate from the volume of available investments and limitedness of maximal volume of investments, and dependence of the economic climate from the volume of available investments and unlimitedness of maximal volume of investments. The profitableness of investments on the economic climate considered for exponential and logistic function. The analysis shows reasons for adverse selection have a fundamental behavioral basis. The given study allows concluding the investment market is not fully self-controlled and sometimes needs government intervention.