|Module Convenor: Stephen Thompson|
The nature of organisational economics- applying economics to understand business organisation: the transaction cost approach; principal-agent models, pre-contractual opportunism, post-contractual opportunism and applications to corporate governance; executive pay; the wage premium; internal job markets; the horizontal boundaries of the firm and the "make versus buy decision"; Economic Foundations of Corporate Governance; and Economic Foundations of Corporate Strategy.
The aim of this module is to introduce key concepts and tools that are used in the economic analysis of organisations. Particular emphasis will be given to the ways in which organisations co-ordinate activities and motivate economic agents. It is intended that the concepts and models covered, including principal-agent models, transaction costs, moral hazard and adverse selection issues, should be particularly useful to students planning careers in finance or consulting.
2.5 hour Examination (100%)
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