COURSE UNIT TITLE

Offered By

Economics

Level of Course Unit

First Cycle Programmes (Bachelor's Degree)

Course Coordinator

PROFESSOR DOCTOR YEŞIM ÜÇDOĞRUK GÜREL

Offered to

Economics

Course Objective

People make choices subject to the information available to them. But when two people interact it is often the case that they do not have access to the same information. For example, it is hard to be sure whether an eBay seller is holding something back in the description of an item for sale (or whether an online dating profile is completely upfront). This creates the need for trust and the opportunity for insincere behavior. In this course, we will see that the consequences of such information asymmetry for otherwise well-functioning markets can be deleterious. But we will also learn what kinds of new market arrangements or institutional structures can be introduced to mitigate these effects. Important specific issues to be covered include adverse selection, moral hazard, price discrimination, signaling, screening, and reputation. All of these issues take on a particular significance in an information society where technology mediates asynchronous and geographically dispersed transactions. The aim of this course is to the help the learner to become familiar with the use of information as one of the main actors of contemporary economics. The course also paves the way for learners to understand the implications of economics of information on strategy, structure and pricing.

Learning Outcomes of the Course Unit

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

ECO 2002 - MICROECONOMICS II

Recomended Optional Programme Components

None

Course Contents

Recomended or Required Reading

1. Shapiro, Carl and Varian, Hal. Information Rules: A Strategic Guide to the Network Economy. Harvard Business School Press, 1998.
2. Brynjolfsson, Erik and Saunders, Adam, Wired for Innovation: How Information Technology is Re-shaping the Economy, MIT Press, 2009.
3. Donald E. Campbell: Incentives: Motivation and the Economics of Information, second edition, Cambridge 2006.
4. Varian, Hal R. Farrell, Joseph Shapiro, Carl. The Economics of Information Technology: An Introduction, Cambridge University Press, Cambridge, 2004.
5. Reading package

Planned Learning Activities and Teaching Methods

1. Lecture
2. Reading
3. Case studies and discussions

Assessment Methods

Further Notes About Assessment Methods

None

Assessment Criteria

1. The learner will define basic concepts of information economics such as adverse selection and moral hazard and their implications on pricing and market structure.
2. The learner will be aware of possible causes and implications of emerging digital technologies and business methods.
3. The learner will use fundamental economic principles to illustrate the information-related business case studies.
4. The learner will analyze the wealth creation and destruction effects of rapid and radical changes related to information.
5. The learner will make research about a specific topic and present it in line with economics of information terminology.

Language of Instruction

English

Course Policies and Rules

1. Attending at least 70 percent of lectures is mandatory.
2. Plagiarism of any type will result in disciplinary action.

Contact Details for the Lecturer(s)

yesim.ucdogruk@deu.edu.tr

Office Hours

To be announced

Work Placement(s)

None

Workload Calculation

Contribution of Learning Outcomes to Programme Outcomes