Welcome to: Information Economics -- a book by Urs Birchler and Monika Bütler.

Oops!

  1. Chapter 14, page 332: β is defined as the fraction of optimists. Therefore β should be replaced by 1-β on the vertical axis in Figures 14.12 and 14.13. (Thanks to Johannes Fritz, University of Zurich)
  2. Chapter 4, Problem 4.2 [A perfect forecast]: The relative probabilities of a boom or a recession are not specified. For question (b) assume that booms and recessions are equally likely!