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- Code:
- ECOM-G311
- Field:
- Microeconomics
- Target:
- Master’s students
- Organiser:
- University of Helsinki - Economics
- Instructor:
- Klaus Kultti
- Period:
- Period 2
- Format:
- Lecture
- Method:
- Contact teaching
- Venue:
- Economicum
- Enrollment:
In case of conflicting information consider the Sisu/Course/Moodle pages the primary source of information.
Aalto and Hanken economics students can enroll in their home university’s SISU! Further instructions can be found on the How to enroll page, also for other students.
Before taking and completing the course make sure that the credits can be counted towards your degree at your home university by checking which courses are included in your curriculum or by contacting your home university’s student/learning services.
Content
The course provides an overview of the issues arising in the economics of information. We learn how information affects decision making, and see how decision makers value information and how they optimally acquire costly information. Then we cover the standard problems of information economics, namely moral hazard, adverse selection and signalling. Understanding how private information and incentives in these problems interact is a prerequisite for understanding many phenomena in labour and financial markets as well as in the field of politics. Finally, we cover some of the following topics: externalities, public goods, auction theory, information transmission, coordination problems, and bank runs.
Learning outcomes
After the course, the student should
- Be familiar with main problems in the economics of information as well as the standard modelling techniques.
- Understand the mechanisms behind standard problems of information economics: adverse selection, moral hazard and signalling