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>