A Case Study in the Economics of Information and Coordination

The Weather Forecasting System

Richard R. Nelson, Sidney G. Winter

Expert InsightsPublished 1963

An application of the economics of information and coordination to problems involving the dissemination, use, and evaluation of weather information. The case studied is the decision problem that confronts the dispatcher of a fleet of trucks. It is concluded that the public forecaster's choice of an information structure should reflect the importance of the different weather dimensions as determined by the number and types of decision problems faced and the sensitivity of the payoff to the action taken.

Topics

Document Details

  • Copyright: RAND Corporation
  • Availability: Web Only
  • Year: 1963
  • Pages: 40
  • Document Number: P-2788

Citation

Chicago Manual of Style

Nelson, Richard R. and Sidney G. Winter, A Case Study in the Economics of Information and Coordination: The Weather Forecasting System. Santa Monica, CA: RAND Corporation, 1963. https://www.rand.org/pubs/papers/P2788.html.
BibTeX RIS

This publication is part of the RAND paper series. The paper series was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.