Checking date: 09/04/2019


Course: 2019/2020

Economics of Information
(13663)
Study: Dual Bachelor in Law and Economics (230)


Coordinating teacher: FERREIRA GARCIA, JOSE LUIS

Department assigned to the subject: Department of Economics

Type: Electives
ECTS Credits: 6.0 ECTS

Course:
Semester:




Competences and skills that will be acquired and learning results. Further information on this link
The objective of this course is to provide students with an introduction to the problems and methods of the economics of information, developed en the last decades to investigate the consequences of the presence of asymmetric information in a variety of economic and political environments. This methodology provides an analysis of the incentive problems present in these settings as well as instruments to investigate the design of contracts and/or institutions that alleviate the inefficiencies caused by asymmetric information. Abilities The course material teaches students how to: - Identify the problems studied by the economic of information in different contexts - The tools provided by this theory to treat and solved the problems associated to the presence of asymmetric information - Evaluate the pros and cons of the alternative mechanisms proposed to deal with these problems - Get familiar with the literature and the basic textbooks that will allow to continue the learning process. Aptitudes The course encourages students to: - Analyze economic problems without prejudices, and with precision and rigor. - Reason critically. - Learn autonomously. - Argue a viewpoint showing its foundation and appreciating the merits of other opinions.
Description of contents: programme
The program includes the following topics: 1. The Agency Model: Risk Sharing 2. Moral Hazard 3. Competitive Markets with Adverse Selection 4. Adverse Selection in the Agency Model: Screening, Signaling 5. Auctions.
Learning activities and methodology
The teaching methodology includes: (1) Master classes, where the student will be introduced to the contents of the course. To facilitate the lecture, the students will have the basic reference texts. This will allow them to complete the topics in deep. (2) Case studies from the economic literature. These cases will be closely related to the specific capacities and skills that the students must develop. (3) Problems resolution. With these problems, the student should be able to self evaluate their knowledge and acquire the necessary skills. (4) Various quizzes during the course. (4) Presentation of team-work.
Assessment System
  • % end-of-term-examination 50
  • % of continuous assessment (assigments, laboratory, practicals...) 50
Basic Bibliography
  • I. Macho y D. Pérez-Castrillo. An Introduction to the Economics of Information. Oxford. 2001
  • V. Krishna. Auction Theory. Academic Press. 2010
Additional Bibliography
  • J. E. Harrington. Games, Strategies, and Decision Making. Worth Publishers. 2009
  • J.-J. Laffont, D. Martimort. The Theory of Incentive. Princeton UP. 2002
  • M. J. Osborne. An introduction to Game Theory. Oxford UP. 2003
  • B. Salanie. The Economics of Contracts: A Primer. MIT Press. 2005
  • P. Bolton, M. Dewatripont. Contract Theory. MIT Press. 2005

The course syllabus and the academic weekly planning may change due academic events or other reasons.


More information: http://www.eco.uc3m.es/docencia/economiainformacion/