Econ 219 Syllabus
Organizational Economics
Term I 2015-2016, SOE, SMU
Lecturer: Huang Fali ([email protected])
Thursday 8:15--11:30 or Friday 8:15--11:30 at SOE SR4.4
Office Hours: Thursday 16:00--17:30 at SOE office 5039
Description
This course applies rigorous economics analysis to important features of major organizations
in society, especially modern firms. It will provide students with adequate analytical tools
and concepts to understand organizations along the following four dimensions. Why do you
set up a firm? (Entrepreneurs and boundaries of the firm). How to attract and motivate the
right people to work for the firm? (Incentives and employment in organizations). How to get
things done in firms? (Decision-making and implementation in organizations). Is the firm
fulfilling its purpose? (Evaluating the performance of organizations).
Prerequisites
Intermediate Microeconomics, Basic Statistics.
Assignments and Grading Policy
1. Regular attendance and active in class discussion and homework, 10%.
2. Book chapter presentation or team debates (30 minutes), 10% ---- Students choose
to present a book chapter or to participate in a debate. For each main topic, we will
have two teams (3 students each) to debate before the whole class. The chapters
and debating topics will be known in the first lecture.
3. Group presentation on a successful firm (30 minutes), 20% ---- All students need to
form a 4-person group from the beginning of the term. The group collectively
chooses to study a real firm and present the firm’s details according to the four
aspects listed in the course content. The presentations will spread evenly across the
latter half of the semester and conducted in class.
4. A written report, 10% ---- Each student has to write an individual summary on what
you have learned in this course. It is to be submitted at the end of term during the
review week.
5. Final exam, 50% ---- closed book, testing on formal concepts and models taught in
class.
ACADEMIC INTEGRITY
All acts of academic dishonesty (including, but not limited to, plagiarism, cheating, fabrication, facilitation of acts of
academic dishonesty by others, unauthorized possession of exam questions, or tampering with the academic work of
other students) are serious offences.
All work (whether oral or written) submitted for purposes of assessment must be the student’s own work. Penalties for
violation of the policy range from zero marks for the component assessment to expulsion, depending on the nature of
the offense.
When in doubt, students should consult the instructors of the course. Details on the SMU Code of Academic Integrity
may be accessed at http://www.smuscd.org/resources.html.
1
RECOMMENDED TEXT AND READINGS:
There is no standard textbook. References can be found in the following books.
Personnel Economics in Practice, 2nd Edition, Edward P. Lazear and Michael Gibbs,
2009. (LG)
Economics, Organization and Management, Milgrom, P. and J. Roberts, PrenticeHall, 1992. (MR)
Economics of Strategy, Besanko, Dranove, Shanley, Shaefer, 2013. (BDSS)
The Modern Firm: Organizational Design for Performance and Growth, John Roberts 2007
Personnel Economics for Managers, Edward P. Lazear, 1998.
WEEKLY LESSON PLAN
(Subject to minor change)
Week in 2015
1
2
3
4
5
6
7
8
9
10
11
12
13
Topic
Readings
Introduction
Entrepreneurs
LG Chpt 14
Incentives (principal-agent)
Notes
3 Sep, Thu
4 Sep, Fri
Uncertainty and Risk Sharing
3 paper presentations
Notes
MR Chpt 7
10 Sep, Thu
11 Sep, Fri
17 Sep, Thu
18 Sep b, Fri
Uncertainty and Risk Sharing
3 paper presentations
Incentives (extensions)
3 paper presentations
Incentives (extensions)
3 paper presentations
Relational Contract
3 paper presentations
Notes
MR Chpt 7
Notes
LG Chpt 10
20 Aug, Thu
21 Aug, Fri
27 Aug, Thu
28 Aug, Fri
24 Sep, Thu
25 Sep, Fri
1 Oct, Thu
2 Oct, Fri
8 Oct, Thu
15 Oct, Thu
16 Oct, Fri
22 Oct, Thu
23 Oct, Fri
29 Oct, Thu
30 Oct, Fri
5, Nov, Thu
6 Nov, Fri
12, Nov, Thu
13 Nov, Fri
14
19, Nov, Thu
15
1, Dec, Tue,
8:30am
Notes
LG Chpt 10
Notes
Recess Week
Relational Contract
1 paper presentation, 2 case presentations
Property Rights (hold-up)
1 paper presentation, 2 case presentations
Vertical Boundary
1 paper presentation, 2 case presentations
Horizontal Boundary
1 paper presentation, 2 case presentations
Corporate Governance
1 paper presentation, 2 case presentations
Revision Week
Final Examination
2
Notes
MR Chpt 9
MR Chpt 9
MR Chpt 16
BDSS Chpt 3
MR Chpt 16
Notes
MR Chpt 15