- Code ECON8078
- Unit Value 6 units
- Offered by Research School of Economics
- ANU College ANU College of Business and Economics
- Course subject Economics
- Areas of interest Economics, Political Economy
- Academic career PGRD
- Mode of delivery In Person
First Semester 2024
See Future Offerings
This course involves on campus teaching. For students unable to come to campus there will be a remote option. See the Class Summary for more details.
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.
Upon successful completion, students will have the knowledge and skills to:
- Analyse and design incentive contracts with regard to asymmetric information and non-contractibility with either performance or welfare goals.
- Evaluate the factors which determine the optimality and relative performance of authority structures in firms and institutions relative to market based solutions.
- Analyse and design decision making structures in organisations with reference to 1 and 2 above.
- Identify drivers of organisational structure and boundary choices and evaluate the welfare consequences.
The majority of economic activity occurs not in markets but in firms and other kinds of economic institutions like hospitals, schools and government agencies. This course will undertake an economic analysis of which activities occur within organisations, how these activities are structured and why. The main tools developed will be the design of incentive contracts, the theory of the firm (boundaries of the firm), models of authority relations and modern economic decision-making theory.
- Problem sets (15) [LO 1,2,3,4]
- Mid-semester exam (35) [LO 1,2,3,4]
- Final exam (50) [LO 1,2,3,4]
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2 hours of lecture and 1 hour of tutorial per week. Plus approximately 7 hours of works outside class.
Requisite and Incompatibility
Gibbons, R., and J. Roberts. 2013. R. Gibbons and J. Roberts (eds.), The Handbook of Organizational Economics. Princeton, NJ: Princeton University Press.
Bolton, P. and M. Dewatripont. 2005. Contract Theory. Cambridge, MA: M.I.T. Press.
Tuition fees are for the academic year indicated at the top of the page.
Commonwealth Support (CSP) Students
If you have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). More information about your student contribution amount for each course at Fees.
- Student Contribution Band:
- Unit value:
- 6 units
If you are a domestic graduate coursework student with a Domestic Tuition Fee (DTF) place or international student you will be required to pay course tuition fees (see below). Course tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.
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Offerings, Dates and Class Summary Links
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Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.
|Class number||Class start date||Last day to enrol||Census date||Class end date||Mode Of Delivery||Class Summary|
|3230||19 Feb 2024||26 Feb 2024||31 Mar 2024||24 May 2024||In Person||N/A|