| Article ID: | iaor20117384 |
| Volume: | 39 |
| Issue: | 4 |
| Start Page Number: | 283 |
| End Page Number: | 288 |
| Publication Date: | Jul 2011 |
| Journal: | Operations Research Letters |
| Authors: | Shim Gyoocheol |
| Keywords: | information |
I investigate an optimal information gathering and consumption/investment choice of an investor who can find a better opportunity by an information gathering option. I obtain a closed form solution, under which, the investor gathers information as soon as his wealth exceeds a certain critical level, consumes less and takes more risk than he would in the absence of such an option.