Information Economics

<p>This new text book by Urs Birchler and Monika Butler is an introduction to the study of how information affects economic relations. The authors provide a narrative treatment of the more formal concepts of Information Economics, using easy to understand and lively illustrations from film and literature and nutshell examples. <br><br>The book first covers the economics of information in a 'man versus nature' context, explaining basic concepts like rational updating or the value of information. Then in a 'man versus man' setting, Birchler and Butler describe strategic issues in the use of information: the make-buy-or-copy decision, the working and failure of markets and the important role of outguessing each other in a macroeconomic context. It closes with a 'man versus himself' perspective, focusing on information management within the individual. </p><p>This book also comes with a supporting website (www.alicebob.info), maintained by the authors. </p> <p>1. Why Study Information Economics? 2. How to Read this Book? Part <strong>1: Information as an Economic Good</strong> 3. What is Information? 4. The Value of Information 5. The Optimal Amount of Information 6. The Production of Information <strong>Part 2: How the Market Aggregates Information</strong> 7. From Information to Prices 8. Knowing Facts or Reading Thoughts 9. Coordination Problems 10. Learning and Cascades 11. The Macroeconomics of Information <strong>Part 3: The Economics of Information Asymmetries </strong>12. The winner's Curse 13. Hidden Information and Self-Selection 14. Optimal Contracts 15. The Revelation Principle 16. Creating Incentives <strong>Part 4: The Economics of Self-Knowledge</strong> 17. Me versus Myself</p>