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Han, B., Tang, Y., & Yang, L. (2016). Public Information and Uninformed Trading: Implications for Market Liquidity and Price Efficiency. Journal of Economic Theory, 163, 604-643.
https://doi.org/10.1016/j.jet.2016.02.012

has been cited by the following article:

• TITLE: Effectiveness of Signal Precision and Risky Choice

  AUTHORS: Weiqi Liu, Huan Liu

  KEYWORDS: Risk Choice, Signal Precision, Rational Expectation, Information Acquisition

  JOURNAL NAME: Theoretical Economics Letters, Vol.11 No.2, April 29, 2021

  ABSTRACT: Higher signal precision helps to predict returns more accurately. But higher signal precision requires higher more costs and longer time. The acquisition of higher precision signals has two opposite effects for investors. First, the higher precision helps with return forecast. Second, the longer processing time is a disadvantage for decision making. We build a rational expected model under the assumption that the longer processing time takes, the higher the signal precision. The results show that higher signal precision is not always better after considering signal processing time. There is an optimal signal waiting time for investors.