Wednesday, November 12, 2008

"Some Ignorance is Cost-Effective."

Tonight while brushing up on a little Econ, I found this:

"It is not rational to expect to have complete information about every decision. Some ignorance is cost-effective. And individual should search(for information) only as long as the expected benefit from searching a little longer is greater than the cost of searching longer. Since the expected benefit of continuing to search once a good deal of information has been collected is likely to be low while the costs of continuing to search are likely to increase, it's sometimes rational to be partially ignorant."

It's true. Thanks for sharing Professor Kearl.


jana said...
This comment has been removed by the author.
jana said...

I would never in one billion years take that class. I'm glad you are smart, and YOU are taking it, so you can explain the world to me. You can be partially ignorant, and I can be completely ignorant.

the boyd family said...

it is true. kearl's really quite entertaining. glad you're him... he is the most famous byu econ professor. years from now someone who went to byu will ask you if you had kearl (seriously happens to me randomly all the time), it's crazy what an impact he makes. (for good and bad)

jana said...

hey your background is making me gag. also write a new post.