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 2012 - 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.

Term projects will be related to the historical/ current economic events.
a) The student will choose a topic or the instructor will assign the term project topic to the student.
b) Term projects will be assessed on 1) organization, 2) content, 3) clarity.
Criteria 1 and 2 are 80 per cent of the total term project grade and criteria 3 is 20 per cent of the total term project grade.
(1) The students who evaluate the topic in a logical sequence with all the required information and cite the references will get 100% (Excellent). The students who evaluate the topic in a logical sequence with all the required information but do not cite the references will get 80% (Very good). The students who evaluate the topic in a logical sequence with missing required information and do not cite the references will get 60% (Good). The students who evaluate the topic but do not have a logical sequence and do not cite the references will get 40% (Fair). The students who evaluate an irrelevant topic with no references will get 0% (Poor).
(2) The students who lay out the topic well, and establish a framework for the rest of the term project, include accurate information with a conclusion summarizing the assignment will get 100% (Excellent). The students who lay out the topic well, and establish a framework for the rest of the term project, include accurate information but do not summarize the assignment with a conclusion will get 80% (Very good). The students who lay out the topic well, include accurate information but do not summarize the term project with a conclusion will get 60% (Good). The students who lay out the topic well but fail to provide accurate information and do not summarize the term project with a conclusion will get 40% (Fair). The students who fail to lay out the topic well, lack accurate information and do not summarize the term project with a conclusion will get 0% (Poor).
(3) The students who clarify their research question well, have good language skills and can explain the subject clearly will get 100% (Excellent). The students who clarify their research question well, have enough language skills and can explain the subject quite clearly will get 80% (Very good). The students who clarify their research question well, have enough language skills, but cannot explain the subject clearly will get 60% (Good). The students who cannot clarify their research question well, have poor language skills and can partially explain the subject will get 40% (Fair). The students who cannot clarify their research question well, have poor language skills and can poorly explain the subject will get 0% (Poor).

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