ECB 356 - Economics of Organizations Seminar (1)

Organizational Economics offers an economic approach to the study of management. We explore how concepts such as optimization and equilibrium can be applied to real problems inside the firm, such as the design of effective performance evaluation systems and employee compensation plans. We consider in detail the problem of assigning decision-making authority within a company. Organizational economics views the firm as a collection of contractual relationships. Topics covered include contract theory, incentives within organizations, relational contracting, and careers in organizations. The course will use Harvard Business School case studies and will invite business practitioners. Prerequisite: ECB 301.