- Does Organization matter?
- Using prices for coordination and motivation.
- Coordinating plans and actions; prices vs quantities, centralisation-decentralisation.
- Bounded rationality and private information: complete vs incomplete contracts, adverse selection, signalling.
- Moral hazard and performance incentives.
- Risk sharing and incentive contracts.
- Rents and efficiency: The efficiency wage theory, reputation, influence activities.
- The concept of ownership. Efficient allocation of ownership.
- The boundaries and structure of the firm.
- Financial structure, ownership and corporate control.
FAI3102 Economics, Organization and Incentives- Introduction Course 7.5 credits
Information per course offering
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Course syllabus as PDF
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Course syllabus FAI3102 (Spring 2019–)Content and learning outcomes
Course contents
Intended learning outcomes
The general purpose of the course is to make you familiar with modern economic theory related to choice of organizational structure on different levels (nation, firm etc), including the design of contracts in different situation. A crucial aspect is then what incentives different alternatives structures/contracts lead to.
Literature and preparations
Specific prerequisites
Admission to postgraduate studies.
Recommended prerequisites
Equipment
Literature
The literature consists of a text book and scientific articles.
The course literature is announced at least four weeks before course start.
Examination and completion
If the course is discontinued, students may request to be examined during the following two academic years.
Grading scale
Examination
- TEN1 - Exam, 7.5 credits, grading scale: P, F
Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.
The examiner may apply another examination format when re-examining individual students.
Opportunity to complete the requirements via supplementary examination
Opportunity to raise an approved grade via renewed examination
Examiner
Ethical approach
- All members of a group are responsible for the group's work.
- In any assessment, every student shall honestly disclose any help received and sources used.
- In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.