The value of information in production economies

Bernhard Eckwert*, Itzhak Zilcha

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


It is known that Blackwell's (1953, Ann. Math. Statist. 24, 265-272) theorem, according to which more information always has positive value, does not hold in many economic circumstances. In particular, in exchange economies with random endowments it may fail completely. We show that in certain economies with risk averse consumers and risk neutral producers the Blackwell theorem holds in competitive equilibrium, given that risk sharing markets are absent. However, in the presence of a risk sharing market it is shown that for CRRA utility functions all agents may become (weakly) worse off with better information. Journal of Economic Literature Classification Numbers: D51, D80, G14.

Original languageEnglish
Pages (from-to)172-186
Number of pages15
JournalJournal of Economic Theory
Issue number1
StatePublished - 2001


FundersFunder number
Stifterverband fur die Deutsche Wissenschaft


    • Blackwell theorem
    • Information system
    • Risk sharing


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