Theoretical Background

In most of the markets in advanced economies information on exchange-offers, i.e. prices, quantities and qualities, is not communicated instantaneously and without cost. Exceptions are highly organized markets, e.g. the stock-exchange, broker and auction markets. Thus, market participants must frequently search for relevant information. Then they must decide not only on the acceptance, rejection, or modification of offers, but also on how much information they want for decision making purposes. What the information behavior of the individuals looks like and how it influences the processes in such markets has not yet been satisfactorily explained in economics.