Because the acquisition of information entails costs, we all seek to economize on information cost
. Sometimes we use cheap-to-observe physical attributes as proxies for some other attribute more costly to observe.
It also modifies the influential theory that property law is heavily shaped by problems of high information costs
: while existing accounts seem to suppose that property law entails relatively high information costs
because it imposes a relatively broad set of duties on others, many of the information cost
problems identified in the literature actually result from the mutual exclusivity problem, rather than from the breadth of property duties.
understanding is itself an information cost
that influences the efficacy
is an obvious challenge to dealing with the illegal
Thus, some private equity investors who bear the information cost
may not face the liquidity issue caused by lock-ups but get the capped discount rate as compensation for incurring information cost
[[lambda].sub.[epsilon]] reflects the information cost
carried by managers in order to get information about foreign exchange markets.
By comparison, if the demand is homogeneous and frequent and the incentives to engage in rent-seeking activities are high, the decision between the negligence rule and strict liability will depend on the relative intensities of the two counterbalancing effects (i.e., the information cost
reducing effect of strict liability vs.
The information cost
functioned as consideration--it signaled the presence of a bargained-for exchange.
Industry statistics may be helpful in general (see sidebar "Information Cost
Statistics"), but management is better convinced by the organization's actual cost data and realistic, conservative savings estimates.
IBM and the Ponemon Institute estimated last year that each lost or stolen record containing sensitive and confidential information cost
Building on a model of information cost
, we test for the development of internal information costs
While the basic accounts can be created free of cost, more meaningful alerts and information cost