Information that helps us make better choices is valuable. However, the time needed to gather it is scarce, making information costly to acquire. As a result, people economize on their search for information just like they do anything else. For example, when you purchase a pair of jeans, you might evaluate the quality and prices of jeans at several different stores. At some point, though, you will decide that additional comparison shopping is simply not worth the trouble. You will make a choice based on the limited information you already have.
The process is similar when individuals search for a restaurant, a new car, or a roommate. They will seek to acquire some information, but at some point, they will decide that the expected benefit derived from gathering still more information is simply not worth the cost. When differences among the alternatives are important to decision makers, they will spend more time and effort gathering information. People are much more likely to read a consumer ratings magazine before purchasing a new automobile than they are before purchasing a new can opener. Because information is costly for people to acquire, limited knowledge and uncertainty about the outcome generally characterize the decision-making process.

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