Sarangi, Sudipta; Kannan, Raj; Ray, Lydia - Royal Economic Society - RES - 2003
We develop a model of information acquisition in a network where agents pay for all the information they acquire … including those through indirect links. The cost of information depends on the value of information itself and the distance it … traverses in the network. We find that when the costs of information increase with distance, the complete network is the only …