Information Economics

by Urs Birchler, Monika Bütler

This new text book by Urs Birchler and Monika Butler is an introduction to the study of how information affects economic relations. The authors provide a narrative treatment of the more formal concepts of Information Economics, using easy to understand and lively illustrations from film and literature and nutshell examples.

The book first covers the economics of information in a 'man versus nature' context, explaining basic concepts like rational updating or the value of information. Then in a 'man versus man' setting, Birchler and Butler describe strategic issues in the use of the make-buy-or-copy decision, the working and failure of markets and the important role of outguessing each other in a macroeconomic context. It closes with a 'man versus himself' perspective, focusing on information management within the individual. This book also comes with a supporting website (www.alicebob.info), maintained by the authors.

Genres: Economics

488 pages, Paperback

First published June 14, 2007

Reviews

[Muhammed Bulutay · Rating 5 out of 5]

I taught this book to my economics students last semester. It's an excellent choice for an elective in a bachelor's degree program. Although it is mostly theoretical, it also covers a wide range of applications and includes many anecdotes that students enjoy. To update the book, I would include topics such as Bayesian persuasion, narratives, rational inattention, and motivated reasoning.

[Steven · Rating 5 out of 5]

Aside from virtue signaling examples, this economics textbook is actually a textbook and not just a soup of symbols that pretends to be attached to reality.

Fortunately, they also didn't really shill for behavioral economics. BE looks to be Boaz and Freud all over again.

It's a good one.

[Peter Frazier · Rating 4 out of 5]

I am using this book as the textbook in my class on information systems and analysis. All of the other books I found covering information economics were written at the graduate level or were research monographs. This book, in contrast, is quite accessible to an undergraduate. It covers modern, interesting material with clear exposition. My only complaints: there are quite a few typos; and sometimes the book is almost *too* elementary for students taking my class, and I have to supplement with more advanced material.