WebMay 1, 2024 · Section snippets Investment opportunity set and information trading. We assume that there is a riskless bond that pays a constant interest rate r and a risky asset S t, with dynamics given by d S t S t = X t d t + σ S d B S, t, d X t = κ (X ¯ − X t) d t + σ X d B X, t, where X t is the expected return, κ is the mean-reverting speed of X t, X ¯ is the long-term … WebJan 1, 2024 · In the canonical setting of jointly normal information sources, we show that the optimal dynamic information acquisition rule proceeds myopically after finitely many periods. If signals are ...

Analysis of Optimal Loading Angle in Dynamic Flattened Brazilian …

WebOur results simplify the analysis of optimal dynamic information acquisition in an in-formational environment that is commonly used in economics: normal signals. However, …WebSecond, I solve a dynamic information acquisition problem with those assumptions imposed on the flow information measure. I show that solving the dynamic problem can be divided into two steps. The first step is to solve a static rational inattention problem for an optimal static information structure. The second step is to solve for therice cooker under $50

Optimal Dynamic Information Acquisition

WebInformation is acquired continuously -- where the agent chooses both which sources to sample from, and also how to allocate attention across them -- until an endogenously chosen time, at which point a decision is taken.WebWe study dynamic acquisition of information when a decision-maker has access to multiple kinds of information, and limited resources with which to acquire that information. ... the optimal information acquisition strategy holds for all decision problems. The main idea in the proof is the following: Intertemporal trade-offs exist when theWeba benchmark with fully flexible information acquisition, the optimal strategy applies to more general settings where information acquisition is not fully flexible, but involves these …redhouse swindon