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DEGREE REGULATIONS & PROGRAMMES OF STUDY 2017/2018

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DRPS : Course Catalogue : School of Economics : Economics

Undergraduate Course: Economics of Asymmetric Information (ECNM10083)

Course Outline
SchoolSchool of Economics CollegeCollege of Humanities and Social Science
Credit level (Normal year taken)SCQF Level 10 (Year 3 Undergraduate) AvailabilityAvailable to all students
SCQF Credits20 ECTS Credits10
SummaryThis course provides an introduction to the key concepts and major issues of economics of asymmetric information for students with a knowledge of economic analysis at the undergraduate level. The main topics include moral hazard, adverse selection, and principal-agent problem.
Course description This course is concerned with the analysis of economic problems that involve interacting economic agents who have different levels of information. The purpose of this course is to introduce the main models of asymmetric information and show how they can be used to analyse the effect of information asymmetries on agents┐ incentives and their implications for consumers┐ and firms┐ behaviour as well as for economic policies.

Topics covered include:
Adverse Selection. Market for Lemons. Signaling. Moral Hazard. Principal-Agent Problem. Participation and Incentive Compatibility Constraints. Optimal Contract.
The course is taught through a programme of lectures and tutorials. Learning-by-doing, through problem solving and discussion of exercise sets, is an important ingredient of the course.
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Students MUST have passed: Economics 2 (ECNM08006)
Co-requisites Students MUST also take: Topics in Microeconomics (ECNM10070)
Prohibited Combinations Other requirements None
Information for Visiting Students
Pre-requisitesVisiting students should usually have an equivalent of at least 4 semester-long Economics courses at grade B or above (or be predicted to obtain this) for entry to this course. This MUST INCLUDE courses in Intermediate Macroeconomics (with calculus); Intermediate Microeconomics (with calculus); Probability and Statistics; and Introductory Econometrics. If macroeconomics and microeconomics courses are not calculus-based, then, in addition, Calculus (or Mathematics for Economics) is required.
High Demand Course? Yes
Course Delivery Information
Academic year 2017/18, Available to all students (SV1) Quota:  None
Course Start Semester 2
Timetable Timetable
Learning and Teaching activities (Further Info) Total Hours: 200 ( Lecture Hours 20, Seminar/Tutorial Hours 4, Summative Assessment Hours 3, Programme Level Learning and Teaching Hours 4, Directed Learning and Independent Learning Hours 169 )
Assessment (Further Info) Written Exam 100 %, Coursework 0 %, Practical Exam 0 %
Additional Information (Assessment) 20% Class Examination
80% Final Examination
Feedback Written individual feedback on one exercise set submitted in advance of the tutorial will be provided fifteen days after due date.
Exam Information
Exam Diet Paper Name Hours & Minutes
Main Exam Diet S2 (April/May)Economics of Asymmetric Information2:00
Learning Outcomes
On completion of this course, the student will be able to:
  1. A knowledge and understanding of key concepts, issues and models of asymmetric information, along with empirical evidence on and policy implications of those models and a deeper understanding of recent research activity.
  2. Research and investigative skills such as problem framing and solving and the ability to assemble and evaluate complex evidence and arguments.
  3. Communication skills in order to critique, create and communicate understanding and to collaborate with and relate to others.
  4. Personal effectiveness through task-management, time-management, teamwork and group interaction, dealing with uncertainty and adapting to new situations, personal and intellectual autonomy through independent learning.
  5. Practical/technical skills such as, modelling skills (abstraction, logic, succinctness), qualitative and quantitative analysis and general IT literacy.
Reading List
There is no single textbook for this course, but typed notes on key topics will be provided. In addition, the course will make use of readings from economic journals.

For general background, students may refer to: Snyder, C. and W. Nicholson (2012), Microeonomic Theory: Basic Principles and Extensions, 11th International Edition, South Western Publishers.
Additional Information
Graduate Attributes and Skills Research and Inquiry
B1. The ability to identify, define and analyse theoretical and applied economic problems and identify or devise approaches to investigate and solve these problems.
B3. The ability to critically assess existing understanding of economic and social issues, the limitations of that understanding and the limitations of their own knowledge and understanding of those issues.
B4. The ability to question the principles, methods, standards and boundaries of economic knowledge

Personal and Intellectual Autonomy
C1. The ability to be independent learners who take responsibility for their own learning, and are committed to continuous reflection, self-evaluation and self-improvement.
C4. The ability to collaborate and debate effectively to test, modify and strengthen their own views.

Communication
D1. The ability to make effective use of oral, written and visual means to critique, create and communicate understanding.
D2. The ability to further their own learning through effective use of feedback.
D3. The ability to use communication as a tool for collaborating and relating to others.

Personal Effectiveness
E1. The ability to manage tasks and also skills in time-management.
E4. The ability to work effectively with others, capitalising on their different thinking.
Additional Class Delivery Information One 2 hour lecture per week, plus tutorials.
KeywordsAsymInfo
Contacts
Course organiserDr Tatiana Kornienko
Tel: 0131 650 8338
Email: Tatiana.Kornienko@ed.ac.uk
Course secretaryMrs Anna Domagala
Tel: (0131 6)51 5305
Email: Anna.Domagala@ed.ac.uk
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