largest literatures in finance. One candidate explanation is that funds process information about future asset values and use … that information to invest in high-valued assets. But formal theories are scarce because information choice models with … attention allocation model that uses the state of the business cycle to predict information choices, which in turn, predict …

If an investor wants to form a portfolio of risky assets and can exert effort to collect information on the future … value of these assets before he invests, which assets should he learn about? The best assets to acquire information about … are ones the investor expects to hold. But the assets the investor holds depend on the information he observes. We build a …

can. But why doesn't global information access eliminate this asymmetry? We model investors, endowed with a small home … information advantage, who choose what information to learn before they invest. Surprisingly, even when home investors can learn … what foreigners know, they choose not to: Investors profit more from knowing information others do not know. Learning …