Investment Implications of Information Acquisition and Leakage
This paper studies when a firm will acquire additional information about a potential new project by consulting outsiders, when doing so runs the risk of reducing the value of implementing the project as a consequence of information leakage. The analysis evaluates the firm's information acquisition activities in both the presence and absence of moral hazard in project production.
and. 2003. Investment Implications of Information Acquisition and Leakage. Management Science. 49(6): 767-783.