This course provides an introduction to Organizational Economics. Organizational Economics is concerned with economic behavior within firms and between firms. Topics include optimal incentive provision within firms, covering optimal piece rate incentives, tournament incentives, relative performance contracts as well as career concerns. The course covers both explicit and implicit performance contracts. Further, the course provides an introduction to the boundaries of the firm (should certain supplies be produced in-house or outsourced) and the role of hierarchies for incentives. Topics will be assessed both form a theoretical and empirical perspective.
This course will be relatively formal and requires knowledge of microeconomics at least at the level of microeconomics 1 and 2 at the Bachelor level. Prior attendance of the Master course “advanced microeconomics” is highly recommended