Information Acquisition and Portfolio Under-Diversification by Stijn Van Nieuwerburgh, Laura Veldkamp

SSRN-Information Acquisition and Portfolio Under-Diversification by Stijn Van Nieuwerburgh, Laura VeldkampVan Nieuwerburgh and Veldkamp (V&V) help us to understand the importance of information costs (as learning capacity) on portfolio decisions. They model the portfolio (diversification) aspect along with the learning (information) costs necessary to hold a diversified portfolio.The authors