IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

The Value of Information in Impersonal and Personal Markets

Listed author(s):
  • Jeffrey F. Jaffe
  • Mark Rubinstein
Registered author(s):

    The conclusions of Hirshleifer (1971) concerning the private and social value of information in a pure exchange economy are examined. We agree that in the impersonal and competitive market of Hirshleifer, the production of new private information has private value and the production of new public information has no social value; however, the dissemination of existing private information has both positive private and social value. For the same reason, the production of private information, even if costless, can be socially harmful. We then examine a personal market, in which each consumer knows something of the economic characteristics of other consumers. In this context, even with arbitrary exchange arrangements, private information can be expected to be less valuable. It is not needed to identify Pareto-efficient allocations and may not even be needed to rank these allocations. Moreover, if either the endowed allocations is itself Pareto-efficient or exchange arrangements are competitive and average beliefs exist, then neither the production nor dissemination of private information has private or social value. In general, there is less incentive than one might expect to trade on private information. In impersonal markets, if the market for information can be efficiently organized, it is better to sell information than trade on it. And in personal markets, there may be no benefit to trading on information.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Paper provided by Wharton School Rodney L. White Center for Financial Research in its series Rodney L. White Center for Financial Research Working Papers with number 16-75.

    in new window

    Date of creation:
    Handle: RePEc:fth:pennfi:16-75
    Contact details of provider: Postal:
    3254 Steinberg Hall-Dietrich Hall, Philadelphia, PA 19104-6367

    Phone: (215) 898-7616
    Fax: (215) 573-8084
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:fth:pennfi:16-75. 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: (Thomas Krichel)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.