caa a22 4500 386308985 CHVBK 20180307111538.0 cr unu---uuuuu 161130e198803 xx s 000 0 eng 10.2307/2331024 doi S0022109000012928 pii (NATIONALLICENCE)cambridge-10.2307/2331024 Information Quality and Market Efficiency [Elektronische Daten] The purpose of this paper is to analyze the optimal individual behavior in acquiring information and to determine the amount of information incorporated in a stock at equilibrium, in the presence of a cost schedule in acquiring information. Our paper shows that at equilibrium the cost to acquire information that is not already incorporated in the price depends only on the representative investor's risk preferences. It follows that the marginal information costs are the same across all stocks at equilibrium even though the stock's information costs schedules may differ. This suggests that the prices of small stocks may not incorporate all publicly available information. This paper also provides empirical evidence that newspapers' publication of publicly available information can affect the stock prices. Copyright © School of Business Administration, University of Washington 1988 Ho Thomas S. Y. Michaely Roni Journal of Financial and Quantitative Analysis Cambridge University Press 23/1(1988-03), 53-70 0022-1090 23:1<53 1988 23 JFQ https://doi.org/10.2307/2331024 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.2307/2331024 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Ho Thomas S. Y. NATIONALLICENCE 700 1- Michaely Roni NATIONALLICENCE 773 0- Journal of Financial and Quantitative Analysis Cambridge University Press 23/1(1988-03), 53-70 0022-1090 23:1<53 1988 23 JFQ CC0 http://creativecommons.org/publicdomain/zero/1.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-cambridge