Module Information
Course Delivery
Delivery Type | Delivery length / details |
---|---|
Lecture | 10 Hours. |
Seminars / Tutorials | 5 Hours. |
Assessment
Assessment Type | Assessment length / details | Proportion |
---|---|---|
Semester Exam | 1.5 Hours | 100% |
Supplementary Exam | 1.5 Hours | 100% |
Learning Outcomes
On successful completion of this module students should be able to:
* Understand the role of markets and firms as alterntive coordinating mechanisms
* Understand transaction cost economics
* Understand the determination of firm boundaries with respect to diversified and vertically integrated activities
* Understand internal organisational forms
* Understand the implications of the separation of the ownership and management (control) functions
* Understand principal-agent theory and incentive contracts
Aims
The module investigates economic explanations of the nature of firms, their organisational form and the scope of their activities. It employs transaction cost economizing to explain the circumstances in which the firm is superior to other forms of organisation, and extends the analysis to examine firm growth and development and the determination of firm boundaries. The module also examines the internal organisation of firms, with particular regard to decision-making and the control problems that may occur, together with the implications of the separation of ownership from managerial control.
Brief description
This module is delivered by lecture and tutorial classes and assessed by final examination. It treats the question of economic coordination and the nature and scope of firms activities.
Content
- Economic Co-ordination: Firms, Markets and Organisations
- Firm Boundaries: Vertical Integration
- Firm Boundaries: Diversification
- Internal Organisation
- Ownership and Control
Transferable skills
The final examination requires rigorous preparation and assimulation of material prior to structured thought and essay writing within a fixed time period.
Reading List
Recommended TextBesanko, Dranove, D and Shanley, M (2000) Economics of Strategy 2nd edition (3rd edition 2005) Wiley Primo search Lipczynski, J, Wilson, J and Goddard, J (2005) Industrial Organization: Competition, Strategy, Policy 2nd edition Prentice Hall Primo search Supplementary Text
Clarke, R and McGuinness, T (eds) (1987) The Economics of the Firm, Blackwell Primo search Douma, S and Schreuder, H (2002) Economic Approaches to Organizations 3rd edition Financial Times Prentice Hall Primo search Milgrom, P and Roberts, J (1992) Economics, Organization and Management Prentice-Hall International Primo search Rickard, S (2006) The Economics of Organizations and Strategy McGraw Hill Primo search
Notes
This module is at CQFW Level 6