22-30.109 Theory of the Firm

Instructors: Prof. Dr. Gerd Mühlheußer

Event type: Interactive class

Displayed in timetable as:

Hours per week: 4

Credits: 6,0

Language of instruction: English

Min. | Max. participants: - | 45

Comments/contents:
The course covers different forms of incentive problems as they typically arise in organization. One set of questions will be concerned with issues concerning the internal structure of organizations (e.g. remuneration of employees). A second set of questions is concerned with the boundaries of the firm, as already raised by Coase (1937): Which transactions are carried out within (vertically integrated) organizations, and which ones are carried out externally via the market? What determines the size of an organization? From a methodological point of view, the course uses some basic tools of principal agent theory and the theory of incomplete contracts.

Didactic concept:
More information about the organisation of the online course can be found under materials after course registration.