Learning Outcomes
On completion of the course the students will be able to:
· set up and analyze game-theoretic problems.
· analyze principal-agent problems within firms and organizations, and suggest solutions to such problems.
· Understand the difference between “hidden action” problems and “hidden characteristics” problems, and how firms and organizations can work to solve them.
· Understand how transaction costs and property rights affect efficient resource allocation within a firm or within society.
· Understand how bounded rationality and decision-maker biases affect the decisions taken in organizations.
· demonstrate a familiarity with a number of empirical examples of the problems described above.
· set up and analyze game-theoretic problems.
· analyze principal-agent problems within firms and organizations, and suggest solutions to such problems.
· Understand the difference between “hidden action” problems and “hidden characteristics” problems, and how firms and organizations can work to solve them.
· Understand how transaction costs and property rights affect efficient resource allocation within a firm or within society.
· Understand how bounded rationality and decision-maker biases affect the decisions taken in organizations.
· demonstrate a familiarity with a number of empirical examples of the problems described above.
Course Content
The course deals with analytical tools and methods used to solve leadership problems in firms and organizations. The course is based on microeconomic theory and uses game theory to solve practical problems.
Assessment
The assessment is composed of assignments (3 HEC’s) and a written exam (4.5 HEC’s).
Forms of Study
The course contains lectures and game theoretic exercises.
Grades
The Swedish grades U–VG.
The written exam will determine the final grade.Prerequisites
- Bachelor degree in Economics or Microdata and the course Microeconomics First Cycle Level
Other Information
There is a maximum of five opportunities to take the exam.
Literature
- Hendrikse, G., Partridge, J. (2003) Economics and management of organizations: co-ordination, motivation and strategy. London: McGraw-Hill Education. (507 p). ISBN 978-0-07-709992-3
Other: latest edition