The course analyzes firms’ problems - including interactions with owners, management, the workforce, and input providers - as well as analyzing the basic issues of corporate governance and corporate finance. The major objective of the course is to prepare the students for a critical assessment of these economic situations and the related economic policies. We analyze firms’ choices using the essential tools of microeconomics and information theory. Upon completing the course, in terms of learning outcomes students will be expected to understand and use the basic analytical tools adopted, with a special emphasis on the theory of incentives, that investigates the behavior of economic agents in the presence of asymmetric information and divergent interests.
General program of the course
I. Economic theory of the organization. Economic organization and efficiency. Transaction costs. The role of information. Business objectives. Non-profit and charitable enterprises.
II. Contracts, information, and incentives. Contracts and the principal-agent model. Contractual incompleteness. Information asymmetries. Adverse selection and moral hazard.
III. Company organization and incentives. Property rights and ownership structure. Market failures. Internal labor market.
IV. Business strategies. Vertical integration and alternative vertical relationships.
|MILGROM P.-ROBERTS J.||Economia, organizzazione e management. Vol. I.||Il Mulino||2005||8815106650|
Teaching format and examinations will be specified as soon as more information on the general rules for the next academic year will be available.