Universität Wien
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040780 UK Theory of Incentives (2009W)

8.00 ECTS (4.00 SWS), SPL 4 - Wirtschaftswissenschaften
Continuous assessment of course work

ACHTUNG!!
Montagstermine wurden größtenteils in das Juridicum verlegt, nächster Termin Montags ist der 12.10., 14.30 - 16.00 Uhr, Seminarraum 41
Folgetermine an den Montagen:
19.10., 14.30 -16.00 Uhr, Seminarraum 41, Juridicum
09.11., 14.30 - 16.00 Uhr, Seminarraum 41, Juridicum
16.11., 14.30 - 16.00 Uhr, Seminarraum 41, Juridicum
23.11., 14.30 -16.00 Uhr, Hörsaal 29, Hauptgebäude
30.11., 14.30 - 16.00 Uhr, Seminarraum 41, Juridicum
07.12., 14.30 - 16.00 Uhr, Seminarraum 41, Juridicum
14.12., 14.30 - 16.00 Uhr, Seminarraum 41, Juridicum
11.01., 14.30 - 16.00 Uhr, Seminarraum 33, Juridicum
18.01., 14.30 - 16.00 Uhr, Seminarraum, 33, Juridicum
25.01., 14.30 - 16.00 Uhr, Hörsaal 28, Hauptgebäude

Registration/Deregistration

Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).

Details

max. 50 participants
Language: English

Lecturers

Classes (iCal) - next class is marked with N

  • Thursday 15.10. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Thursday 22.10. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Thursday 29.10. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Thursday 29.10. 15:00 - 17:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Thursday 05.11. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Thursday 12.11. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Thursday 19.11. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Monday 23.11. 14:30 - 16:00 Hörsaal 29 Hauptgebäude, 1.Stock, Stiege 7
  • Thursday 26.11. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Thursday 03.12. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Thursday 10.12. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Thursday 17.12. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Thursday 07.01. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Thursday 14.01. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Thursday 21.01. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)
  • Monday 25.01. 14:30 - 16:00 Hörsaal 29 Hauptgebäude, 1.Stock, Stiege 7
  • Thursday 28.01. 09:00 - 11:00 (Seminarraum 1 Hohenstaufengasse 9 1.Stock)

Information

Aims, contents and method of the course

Standard microeconomic theory treats the firm as a "black box": it remains silent on how the owners of firms succeed in aligning the objectives of its various members (workers, supervisors, managers) with profit maximization. The Theory of Incentives (or Contract Theory) studies situations in which (i) the members of a firm have conflicting objectives, and (ii) information is decentralized (in the sense that the various agents hold private information not observable to others). Its insights are not limited to firms, but also extend to organizations in general, small markets, and any other environment of collective decision-making.

Assessment and permitted materials

Attendance is compulsory. If you miss class for more than three times, you will need a valid excuse. You will have to sit for 2 written exams and prepare a presentation of a research paper of your choice. Your final grade will be calculated as follows:
Mid-term Exam (30%), Student Presentation (30%), Final Exam (40%)

Minimum requirements and assessment criteria

The goal is to introduce students to the main issues and methods of modern contract theory. We will start with the so-called Principal-Agent Model, which allows us to study issues like Adverse Selection, Signaling, and Moral Hazard. Depending on how fast we proceed, I may also cover Incomplete Contracts and Bargaining. All issues will be illustrated with a number of real-world applications and examples.

Examination topics

The course has a standard lecture part and a hands-on exercises part where students are encouraged to apply the new concepts and techniques to a number of different problems. You will also have to prepare a presentation of a research paper studying the empirical relevance of the issues covered in the theory part of the class.

Reading list

Jean-Jacques Laffont and David Martimort: The Theory of Incentives: The Principal-Agent Model, Princeton University Press, 2002.

Association in the course directory

Last modified: Mo 07.09.2020 15:29