Economics of the Organization

1.5 units

Business organizations are complex systems with mutually dependent parts. This course provides an economic framework for the analysis of a variety of challenges that businesses face at both the organizational and individual employee levels. We will consider what economics can say about the efficient organization of firms and businesses as well as their relationships with their employees and provide an economic approach to solving organizational problems and incentive issues that arise from adverse selection, moral hazard, and agency. We consider alternative solutions to these problems and apply the lessons to case studies, discussion of which forms the core of the course.