Economics of Contracts and Organizations

(The following schedule is subject to change.) 1. Introduction 2. Moral Hazard: Basics 3. Multitasking 4. Evaluation Systems 5. Dynamic Contracting 6. Incomplete Contracting 7. Relational Contracting 8. Miscellaneous issues Although the topics to be discussed are mainly theoretical, we will also discuss relationships with empirical works.

The course will be based on a series of lectures. Readings and problem sets will be assigned.

The grade will be based on two essays (mid-term and final), assigning mock referee reports on scholarly papers and/or research proposals. Students are expected to take the exercises seriously as well.

Lecture notes will be distributed. The note is mainly based on the following materials and original scholarly articles cited therein. (The reading list of scholarly articles will be distributed.)

Salanie, B. (2005): The Economics of Contracts, A Primer Second Edition, MIT Press. Macho-Stadler, I. and Perez-Castrillo, J.D. (2001): An Introduction to the Economics of Information: Incentives and Contracts, Second Edition, Oxford University Press. Laffont, J.-J.and Martimort, D.(2002): The Theory of Incentives: The Principal-Agent Model, Princeton University Press. Bolton, P. and Dewatripont, M. (2005): Contract Theory, MIT Press. Hart, O.(1995): Firms,Contracts,and Financial Structures, Oxford University Press. Aghion, P., Dewatripont, M., Legros, P., and Zingales, L. (2016): The Impact of Incomplete Contracts on Economics, Oxford University Press. Milgrom, P. and Roberts, J. (1992): Economics, Organization and Management, Prentice-Hall. Gibbons,R. and Roberts,J.(2013): Handbook of Organizational Economics, Princeton University Press.

The lecture will be in English (subject to change conditional on the participants). Participants must have knowledge of (ideally advanced or at least intermediate) microeconomics and mathematics: especially, game theory, economics of information, constrained optimization, and probability. The course material and important information will be distributed via the course website on UTOL. Please visit the course website at least once in a week.