Editing Microeconomics (section)

== Information economics ==
{{main|Information economics}}

Information economics is a branch of microeconomic theory that studies how information and information systems affect an [[economy]] and economic decisions. Information has special characteristics. It is easy to create but hard to trust. It is easy to spread but hard to control. It influences many decisions. These special characteristics (as compared with other types of goods) complicate many standard economic theories.<ref>• Beth Allen, 1990. "Information as an Economic Commodity," ''American Economic Review'', 80(2),  pp. [https://www.jstor.org/pss/2006582 268]–273.<br />&nbsp;&nbsp;• [[Kenneth J. Arrow]], 1999. "Information and the Organization of Industry," ch. 1, in Graciela Chichilnisky ''Markets, Information, and Uncertainty.'' Cambridge University Press, pp. [https://books.google.com/books?id=m6PLCb18RrsC&dq=false&pg=PA20 20–21].<br />&nbsp;&nbsp; • _____, 1996. "The Economics of Information: An Exposition," ''Empirica'', 23(2), pp.&nbsp;[https://doi.org/10.1007%2FBF00925335 119]–128.<br />&nbsp;&nbsp; • _____, 1984. ''Collected Papers of Kenneth J. Arrow'', v. 4, ''The Economics of Information''. [http://www.hup.harvard.edu/catalog.php?isbn=9780674137639 Description] {{webarchive|url=https://web.archive.org/web/20120330214121/http://www.hup.harvard.edu/catalog.php?isbn=9780674137639 |date=2012-03-30 }} and chapter-preview [https://books.google.com/books?id=ZYIiFsrT0dcC&pg=PP9=ONEPAGE links.]<br />&nbsp;&nbsp; • [[Jean-Jacques Laffont]], 1989. ''The Economics of Uncertainty and Information'', MIT Press. [http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=7640 Description]  {{webarchive|url=https://web.archive.org/web/20120125171634/http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=7640 |date=2012-01-25 }} and chapter-preview [https://books.google.com/books/p/harvard?id=7r484x3HVu4C&printsec=find&pg=PR5=#v=onepage&q&f=false links].</ref> The economics of information has recently become of great interest to many - possibly due to the rise of information-based companies inside the technology industry.<ref name="Varian H.R. 1987">Varian H.R. (1987) Microeconomics. In: Palgrave Macmillan (eds) The New Palgrave Dictionary of Economics. Palgrave Macmillan, London.</ref> From a game theory approach, the usual constraints that agents have complete information can be loosened to further examine the consequences of having incomplete information. This gives rise to many results which are applicable to real life situations. For example, if one does loosen this assumption, then it is possible to scrutinize the actions of agents in situations of uncertainty. It is also possible to more fully understand the impacts – both positive and negative – of agents seeking out or acquiring information.<ref name="Varian H.R. 1987"/>