ECO 210 - Economics of Information

Course Units: 1

This course presents concepts, models and tools to analyze how firms and consumers behave and make decisions in economic transactions under different informational scenarios. It includes applications to pricing strategies, consumer behavior and marketing strategies, insurance markets, environmental information, auctions, and digital information and the Economics of the Internet. Information has economic value because it enables us to make better decisions that yield a higher payoff than we would obtain from choices made in the absence of information. However, in many real economic situations (e.g., when we buy a used car) we behave without full information and often others have more information, taking advantage of this situation of asymmetric information. Prerequisite(s): ECO 101 or AP Econmics credit.