Economics of Information
Universidad Carlos III de Madrid
Area of Study
Business, Business Administration, Economics, International Business, International Economics
Taught In English
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits3
Recommended U.S. Quarter Units4
Hours & Credits
COMPETENCES AND SKILLS THAT WILL BE ACQUIRED AND LEARNING RESULTS
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.
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.
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
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) Presentation of team-work.
The course grade will be the weighted average of the grade obtained in a midterm exam (40%) and a final comprehensive exam (60%).
Please note that there are no beginning level Spanish courses offered in this program.
Courses and course hours of instruction are subject to change.
Eligibility for courses may be subject to a placement exam and/or pre-requisites.
Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.
ECTS (European Credit Transfer and Accumulation System) credits are converted to semester credits/quarter units differently among U.S. universities. Students should confirm the conversion scale used at their home university when determining credit transfer.
Please reference fall and spring course lists as not all courses are taught during both semesters.
Availability of courses is based on enrollment numbers. All students should seek pre-approval for alternate courses in the event of last minute class cancellations
Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.