Course Description: This course examines information from an economic perspective. We will introduce a range of seminal theories that describe how information is created, shared, and valued. Our focus covers both the role of information in the general economy, as well as the specific behavior of information markets. Topics will include information technology, knowledge production, markets with hidden information, digital goods, and networks. While this is a theoretical course, the tools and insights it provides may benefit any student navigating issues in the information economy.
Prerequisites: Mathematics at the level of introductory calculus. A previous course in microeconomics is recommended.
Collaboration Policy: You may work with anyone on assignments, but please write your own solutions and include a list of all your collaborators.
Tentative Grading Criteria:
20% responses to readings
40% quizzes and problem sets
10% final project proposal
30% final paper
All assignments are due at 2pm on the due date.
Responses to Readings: For each required reading, please write a critical response (1/2 page max). In particular, if the reading describes a mathematical model, identify what you believe is the model's strongest assumption and try to justify your choice. Be prepared to discuss your response in class.
Final Paper: The course will end with a major research paper on some aspect of information economics. Possible approaches include,
- Apply a model from the readings to a specific industry, or modern business problem.
- Investigate an area of public policy from an information economic perspective, and describe implications for governance.
- Extend the state of economic research. Build and characterize a new model related to information.
Papers should be approximately 12 pages long, or follow a format from an appropriate conference venue.