Differential Information, Monopolistic Competition, and Investment
研究垄断竞争行业中企业在不完全信息下的投资行为，发现当企业能观察自身生产率但不知其构成时，投资波动性高于完全信息情形，且竞争加剧会提高投资波动性。
The behavior of investment in a monopolistically competitive industry is investigated under the assumption of imperfect information about the average investment. Firms' profits are affected by productivity shocks. These shocks consist of two types of disturbances, industry-wide and idiosyncratic ones. The main results are investment under imperfect information is more volatile than that under perfect information if firms can observe their own productivity conditions (but not their components) and increased competition always destabilizes investment and raises its volatility. The rigidity of rational expectations plays a crucial role. Copyright 1991 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.