IDEAS home Printed from https://ideas.repec.org/a/rje/bellje/v6y1975ispringp184-195.html
   My bibliography  Save this article

Informational Economies of Scale

Author

Listed:
  • Robert Wilson

Abstract

The theory of the firm under uncertainty is examined in the context of several examples which illustrate that opportunities to purchase technological information at some cost in resources may induce economies of scale even though the technology of physical production has no economies of scale. Better information justifies a higher scale of operations and vice versa. The two effects combined lead to an unbounded optimal scale of operations when information acquisition is adjusted optimally.

Suggested Citation

  • Robert Wilson, 1975. "Informational Economies of Scale," Bell Journal of Economics, The RAND Corporation, vol. 6(1), pages 184-195, Spring.
  • Handle: RePEc:rje:bellje:v:6:y:1975:i:spring:p:184-195
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0361-915X%28197521%296%3A1%3C184%3AIEOS%3E2.0.CO%3B2-E&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huanxiu Guo & Sébastien Marchand, 2013. "Is participatory social learning a performance driver for Chinese smallholder farmers?," Working Papers halshs-00878886, HAL.
    2. Blackburn, Keith & Bose, Niloy, 2003. "A model of trickle-down through learning," Journal of Economic Dynamics and Control, Elsevier, vol. 27(3), pages 445-466, January.
    3. Norton, Seth W, 1997. "Information and Competitive Advantage: The Rise of General Motors," Journal of Law and Economics, University of Chicago Press, vol. 40(1), pages 245-260, April.
    4. Jovanovic, Boyan & Nyarko, Yaw, 1996. "Learning by Doing and the Choice of Technology," Econometrica, Econometric Society, vol. 64(6), pages 1299-1310, November.
    5. Robert M. Hull & George E. Pinches, 1995. "Firm Size and the Information Content of Over-the-Counter Common Stock Offerings," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 4(1), pages 31-55, Spring.
    6. repec:bin:bpeajo:v:26:y:1995:i:1995-3:p:247-305 is not listed on IDEAS
    7. Shih-Chuan Tsai, 2014. "Individuals’ Trading Prior to Earnings Announcements," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 41(9-10), pages 1124-1156, November.
    8. repec:bin:bpeajo:v:24:y:1993:i:1993-1m:p:197-247 is not listed on IDEAS
    9. André Lapidus, 1987. "Avant-propos," Revue Économique, Programme National Persée, vol. 38(6), pages 1081-1094.
    10. Xiaojuan Hu & Cheng-Zhong Qin, 2013. "Information acquisition and welfare effect in a model of competitive financial markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(1), pages 199-210, September.
    11. Paul M. Romer, 1989. "Increasing Returns and New Developments in the Theory of Growth," NBER Working Papers 3098, National Bureau of Economic Research, Inc.
    12. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    13. repec:trp:01jefa:jefa0017 is not listed on IDEAS
    14. Chade, Hector & Schlee, Edward, 2002. "Another Look at the Radner-Stiglitz Nonconcavity in the Value of Information," Journal of Economic Theory, Elsevier, vol. 107(2), pages 421-452, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:6:y:1975:i:spring:p:184-195. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: https://www.rje.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.