Microeconomics 2 (5 cr)

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, Hanken and UH economics students can enroll through their home university’s SISU. Further instructions are available on the How to enroll? page, also for students from other universities.

If you would like to count the credits towards your degree, please check your curriculum or contact your supervisor or student services for guidance.

  • To access the Moodle course area, use all the features and participate in the activities (assignments, discussions), you must have successfully registered for the course in Sisu and logged in with your UH user ID.
  • For more information on how to activate your UH user ID and register for a Moodle course area, click here.

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.

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