Gentzkow, Matthew; Kamenica, Emir - In: American Economic Review 104 (2014) 5, pp. 457-62
We study the design of informational environments in settings where generating information is costly. We assume that the cost of a signal is proportional to the expected reduction in uncertainty. We show that Kamenica & Gentzkow's (2011) concavification approach to characterizing optimal signals...