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FAI3102 Economics, Organization and Incentives- Introduction Course 7.5 credits

Information per course offering

Termin

Information for Spring 2025 Start 17 Mar 2025 programme students

Course location

KTH Campus

Duration
17 Mar 2025 - 2 Jun 2025
Periods

Spring 2025: P4 (7.5 hp)

Pace of study

50%

Application code

61372

Form of study

Normal Daytime

Language of instruction

Swedish

Course memo
Course memo is not published
Number of places

Places are not limited

Target group
No information inserted
Planned modular schedule
No information inserted
Schedule
Schedule is not published
Part of programme
No information inserted

Contact

Course coordinator
No information inserted
Teachers
No information inserted

Course syllabus as PDF

Please note: all information from the Course syllabus is available on this page in an accessible format.

Course syllabus FAI3102 (Spring 2019–)
Headings with content from the Course syllabus FAI3102 (Spring 2019–) are denoted with an asterisk ( )

Content and learning outcomes

Course contents

  • 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.

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.

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

Grading scale

P, F

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.

If the course is discontinued, students may request to be examined during the following two academic years.

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.

Further information

Course room in Canvas

Registered students find further information about the implementation of the course in the course room in Canvas. A link to the course room can be found under the tab Studies in the Personal menu at the start of the course.

Offered by

Education cycle

Third cycle

Postgraduate course

Postgraduate courses at ABE/ Surveying – Geodesy, Land Law and Real Estate Planning