| Article ID: | iaor20041941 |
| Country: | United States |
| Volume: | 49 |
| Issue: | 6 |
| Start Page Number: | 767 |
| End Page Number: | 783 |
| Publication Date: | Jan 2003 |
| Journal: | Management Science |
| Authors: | Sridhar Sri S., Dye Ronald A. |
| Keywords: | risk, research |
This paper studies when a firm will acquire additional information about a potential new project by consulting outsiders, when doing so runs the risk of reducing the value of implementing the project as a consequence of information leakage. The analysis evaluates the firm's information acquisition activities in both the presence and absence of moral hazard in project production.