PRINCIPLES OF ORGANIZATIONAL ECONOMICS

This course provides first-year doctoral students in Management with: (a) a working knowledge about games with complete information; (b) an introduction to contract theory; (c) an exposure to questions and approaches in organizational economics.

The course aims to make students comfortable with using the language and tools of economic theory for describing or analyzing managerial problems.

1. Knowledge and understanding:
1.1. Knowing models for the analysis of issues in organizational economics;
1.2. Knowing how to present and interpret the results produced by these models to answer research questions in management (widely interpreted);
1.3. Knowing the hypotheses at the basis of the models studied during the course and their logical consequences on the conclusions.

2. Applying knowledge and understanding:
2.1. Applying the models studied in the course to answer a research question in management;
2.2. Comparing the results produced by alternative models based on different set of hypotheses and their limitations concerning the research questions at hand;
2.3. Using empirical evidence to assess the plausibility of alternative set of assumptions fed into the models.

3. Evaluation and project skills:
3.1. Designing novel models (or tweaking existing one) to address an economic research question of interest;
3.2. Evaluating the contribution provided by models available in the economic literature to address a research question of interest;
3.3. Thinking about the formulation of models aimed at improving the existing knowledge base or address specific issues.

4. Lifelong learning skills
4.1 Master complex theoretical reasoning;
4.2 Master principles of information economics to guide applications;
4.3 Ability to exploit new tools and adapt them to different contexts.

You are expected to be familiar with game theory at the level of Part i and II in Bonanno (2018), Game Theory. You are expected to be familiar with calculus and probability at the level of Chapter 19 in Tadelis (2013), Game Theory: An Introduction. If needed, please make room in the summer to catch up.

The course is arranged in three blocks of equal length:
a) game theory;
b) contract theory;
c) organizational economics.

Main references:
[HOE] R. Gibbons and J. Roberts (2013), eds., The Handbook of Organizational Economics, Princeton University Press.
[MG] F. Munoz-Garcia (2017), Advanced Microeconomic Theory: An Intuitive Approach with Examples, The MIT Press.
[VH] The Visible Hand, podcast, see https://www.thevisiblehand.uk

Additional readings:
The Moodle coursepage makes available all readings and accompanying material.

Grading is comparative, and is based on five deliverables:
20%: one problem set for Block 1;
20%: one problem set for Block 2;
20%: one class presentation (25’, max 12 slides) on a topic chosen from The Visible Hand podcast; the topic must be communicated and agreed with the instructor;
20%: one take-home exam (length: 48h) with one question covering Block 1, one question covering Block 2, and a commentary on a topic from HOE 1-2-3;
20%: two critical reviews (min 4pp. each) or a combination of one critical review (min 4pp.) plus one research proposal (max 10pp); the reviewed papers and the topic of the proposal must be communicated and agreed with the instructor.

The first two blocks follow a standard format where teaching is delivered by the instructor. During this time, students are expected to read on their own Chapters 1-2-3-5 of HOE in preparation for the third block. The third block covers material from Chapters 9-10-11 of HOE and other additional readings, as well as short presentations from the students.

For more information and updates, trust only the class Moodle page.

Ca’ Foscari abides by Italian Law (Law 17/1999; Law 170/2010) regarding support services and accommodation available to students with disabilities. This includes students with mobility, visual, hearing and other disabilities (Law 17/1999), and specific learning impairments (Law 170/2010). If you have a disability or impairment that requires accommodations (i.e., alternate testing, readers, note takers or interpreters) please contact the Disability and Accessibility Offices in Student Services: disabilita@unive.it.

written and oral