Organisational Economics studies the design of firms and other economic institutions. It develops frameworks which are applied to the problems faced by managers and entrepreneurs. How should incentives be designed in organisations? How should an organisation optimally choose its staff, allocate individuals to tasks within the organisation and then coordinate their actions? Which tasks should be outsourced? How do the answers to these questions depend on external factors such as market competition and technological developments? Tools from game theory, information economics and behavioural economics are introduced and applied to analyse these (and other) problems.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Analyse and design incentive contracts with regard to asymmetric information and non-contractibility with either performance or welfare goals.
2. Evaluate the factors which determine the optimality and relative performance of authority structures in firms and institutions relative to market based solutions.
3. Analyse and design decision making structures in organisations with reference to 1 and 2 above.
4. Identify drivers of organisational structure and boundary choices and evaluate the welfare consequences.

Research-Led Teaching

The course will be based on recent and classic research findings in the field plus Professor Meagher's own research program in the field.

Field Trips

None

Additional Course Costs

None

Examination Material or equipment

Calculator, as provided by the Exams Office on the day of the exam.

Required Resources

The Handbook of Organizational Economics (see below) is the main resource for the course. The library can provide access. This is a large book and we will only covered selected parts.

You may need access to a calculator to complete exercises required for this course. You will be provided with a calculator (HP Scientific Calculator 300s+) for the final examination.

Recommended Resources

Gibbons, R. and Roberts, J. eds., 2013. The handbook of organizational economics. Princeton University Press.

Hart, O., 1995. Firms, contracts, and financial structure. Clarendon press.

Additional reading will be listed on Wattle.

Staff Feedback

Students will be given feedback in the following forms in this course:

• written comments on the reports through TurnItIn.
• verbal feedback to whole class, groups, individuals, focus group on the tutorial problem sets. This feedback is also interactive so you need to ask questions on feedback in tutorials.

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Introduction and review of the Neoclassical theory.
2	Why firms and what are their boundaries. Hart (1995) plus other references on Wattle and/or in class.
3	Why firms and what are their boundaries. Hart (1995) plus other references on Wattle and/or in class.	Tutorial Problem sets. Due Monday's 12 noon.
4	Incentives, authority and decision making inside firms and other organisations. Gibbons and Roberts (2013). Details and additional references will be provided in class and/or on Wattle.	Tutorial Problem sets. Due Monday's 12 noon.
5	Incentives, authority and decision making inside firms and other organisations. Gibbons and Roberts (2013). Details and additional references will be provided in class and/or on Wattle.	Tutorial Problem sets. Due Monday's 12 noon.
6	Incentives, authority and decision making inside firms and other organisations. Gibbons and Roberts (2013). Details and additional references will be provided in class and/or on Wattle.	Tutorial Problem sets. Due Monday's 12 noon.
7	Incentives, authority and decision making inside firms and other organisations. Gibbons and Roberts (2013). Details and additional references will be provided in class and/or on Wattle.	Tutorial Problem sets. Due Monday's 12 noon.
8	Incentives, authority and decision making inside firms and other organisations. Gibbons and Roberts (2013). Details and additional references will be provided in class and/or on Wattle.	Tutorial Problem sets. Due Monday's 12 noon.
9	Incentives, authority and decision making inside firms and other organisations. Gibbons and Roberts (2013). Details and additional references will be provided in class and/or on Wattle.	Tutorial Problem sets. Due Monday's 12 noon. One page report due 2020-May-04 at 12 noon.
10	Incentives, authority and decision making inside firms and other organisations. Gibbons and Roberts (2013). Details and additional references will be provided in class and/or on Wattle.	Tutorial Problem sets. Due Monday's 12 noon.
11	Incentives, authority and decision making inside firms and other organisations. Gibbons and Roberts (2013). Details and additional references will be provided in class and/or on Wattle.
12	What have we learned?

Tutorial Registration

There is no need to enrol in a tutorial. The combined course tutorial appears in the timetable as Wednesday 12:00-13:00, with one of the lectures immediately beforehand (11:00-12:00). We will be flexible about allocating time between the lecture and tutorial activities in this block as needed.

Assessment Summary

Assessment task	Value	Due Date	Learning Outcomes
Tutorial problem sets	15 %	*	1,2,3,4
One page report on a research paper.	15 %	04/05/2020	1,2,3,4
Final Exam	70 %	*	1,2,3,4

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information 
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

You will be called upon to contribute during tutorials. This is an on-campus course. Attendance at all teaching events, while not compulsory, is expected in line with “Code of Practice for Teaching and Learning”, clause 2 paragraph (b).

 In addition, tutorials are a discussion-based class. Providing worked solutions would not effectively compensate for missing a tutorial. Students who, through unavoidable and unplanned occurrences, are unable to attend a tutorial class one week are encouraged to work through the problems and attend a consultation session for discussion and solutions.

Examination(s)

There is a final exam for the course. Note assessment Tasks 1 and 2 are hurdle assessments and you must have achieved at least 40% in each of them in order to be eligible to sit the final exam. The final exam will be a mixture of multiple choice and written "short answer" questions covering formal analysis and intuition.

You will be provided with a calculator (HP Scientific Calculator 300s+) for this exam. Only calculators provided by the Examinations Office on the day of the exam are permitted in the exam room.

Assessment Task 1

Tutorial problem sets

Submit your answers/solutions for the appropriate week, as a pdf, by 12 noon on Monday of that week using Turnitin (details on Wattle). No late submission will be accepted. Eight tutorial problem sets will be due throughout the semester, the worst 2 marks awarded for the tutorial problem sets will be dropped in calculating the average (which determines the mark for this item). This is a hurdle assessment in line with the student assessment coursework policy (see https://policies.anu.edu.au/ppl/document/ANUP_004603). You must achieve at least 40% in order to be eligible to sit the final exam.

Marking Rubric

2 = satisfactory attempt at all problems

1 = unsatisfactory attempt at some problems or incomplete attempt

 0 = unsatisfactory attempt or no attempt for all problems

Assessment Task 2

One page report on a research paper.

Write a one page report communicating and evaluating the main findings of a research paper. Details of paper selection, formatting, submission will be on Wattle by the end of week 2. Submission is due by 12 noon. The paper you would like to select (from an approved list) must be emailed to the lecturer for approval by 12 noon on 2020-March-31. This is a hurdle assessment in line with the student assessment coursework policy (see https://policies.anu.edu.au/ppl/document/ANUP_004603). You must achieve at least 40% in order to be eligible to sit the final exam.

Rubric

CLARITY, LANGUAGE AND GRAMMAR	EXPLANATION OF MAIN CONTRIBUTION OF THE PAPER	ECONOMIC INTUITION FOR MAIN RESULT	EVALUATION OF STRENGTHS AND WEAKNESSES
25	25	25	25

Assessment Task 3

Final Exam

The final exam will cover material presented throughout the semester and will be held during the university examination period. Probably 120 minutes with no reading time (subject to University timetabling). The exam will include both multiple choice and short answer questions. Short answer questions can include mathematical derivations or proofs, diagrams and written discussion. There are no past exam papers for the course but I will provide review questions.

Please note - you will be provided with a calculator (HP Scientific Calculator 300s+) for this exam. Only calculators provided by the Examinations Office on the day of the exam are permitted in the exam room.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.

The ANU commits to assisting all members of our community to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to be familiar with the academic integrity principle and Academic Misconduct Rule, uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with.

The Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

Individual assessment tasks may or may not allow for late submission. Policy regarding late submission is detailed below:

• Late submission not permitted. If submission of assessment tasks without an extension after the due date is not permitted, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

Grades for Tasks 1 and 2 will be posted in Wattle. Feedback on the tutorial problems will be provided int he tutorials. Make sure you keep a copy of the work you submit.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments

Not applicable.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students