Information Economics

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 i...