LFU:online

The module will give an introduction to modern information economics related to fi­nancial markets. Participants should be able to give meaningful answers to questions like:  
Is the value of an information always positive?
Should inside trading be prohibited?             
To what extent can Bayes’ decision rule be adopted in financial markets?        
How should a rational investor deal with financial information?  
To what extent indexed investments are rational?

Information in decisions against nature (natural sciences); Bayes’ updating rule; Information in decisions against selfish others (games); First order information, second order information; Informational efficiency of financial markets, Private information in efficient and less than efficient markets; Public information in efficient and less than efficient markets.

Lecture with discussion. Paper präsentations and discussions.

Final exam with inclusion of the seminar performances, esp. the session moderation

Birchler, Urs; Bütler, Monika: Information Economics, Routledge 2007

Schredelseker, Klaus: Grundlagen der Finanzwirtschaft – Ein informationsökonomischer Zugang, München 2013

Schredelseker, Klaus: Pascal’s Wager and Information, JoForecasting 2014, 455-470

Stiglitz, Joseph: The Contribution of the Economics of Information to Twentieth Century Economics, QJE 2000, 1441-1478

Strong, Norman; Walker, Martin: Information and Capital Markets, Basil Blackwell 1987

Schredelseker, Klaus: There Is No Unique Rational Decision Strategy in Financial Markets, JPM 2022, 153-163

Positive grades of modules according to § 7 Abs. 1 Z 2 to 5

Registration is always required for interactive courses such as SE, UE, PS or AG (for the
MA Business Information Systems also for VO).
If the status "Registration request" is changed to "Registration confirmed" after the end of the registration period for MA studies, the student is automatically registered for the VO (or VU) belonging to the module.
The course takes place in normal attendance mode.