Information costs

Information costs

Transactions costs that include the assessment of the investment merits of a financial asset. Related: Search costs.

Information Costs

Costs that come from due diligence. That is, information costs include everything an individual or company spends when investigating whether a particular investment or activity is prudent and/or likely to be profitable.
References in periodicals archive ?
The results show that, in instances where similar items were compared and the information costs were lower, consumers preferred to select the item which provided the easiest access to further information, regardless of whether the other product was superior, as they felt more confident with their decision.
After years of effort, the Global Information Network has centralized information costs, established global information strategies and standardized purchase protocols.
Benefits of e-procurement also include improvements in market access and competition, promotion of integrity, reduced information costs and easier access to information.
But that information costs nothing from the DVLA and organisations such as the AA.
When information costs are high, the design of self-revelation contracts implies that low interest rates are available only for small amounts of debt.
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.
Worldwide information and Communication Technology (ICT) is proving instrumental in modernizing governance, increasing transparency and reducing information costs along the value chain for businesses.
For example, NAV discounts tend to be larger for smaller funds and smaller transactions, where the information costs per dollar invested are higher.
Smith's modularity framework is based on information costs
It helps organization manage information risks, reduce information costs, and maximize business benefits.
This Article uses auction theory principles and the related concept of information costs to correlate deal protection devices to the pre-signing sale process in change of control transactions.

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