Module Identifier EC31410  
Module Title ECONOMICS AND ORGANISATIONS  
Academic Year 2005/2006  
Co-ordinator Mr Dennis A Thomas  
Semester Semester 1  
Pre-Requisite EC36420 Business and Management (Single and Major) degree schemes only  
Mutually Exclusive EC31920  
Course delivery Lecture    
  Seminars / Tutorials    
Assessment
Assessment TypeAssessment Length/DetailsProportion
Semester Exam1.5 Hours  100%
Supplementary Exam1.5 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 third year module is available only to Business and Management students and 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

1. Economic Co-ordination: Firms, Markets and Organisations
2. Firm Boundaries: Vertical Integration
3. Firm Boundaries: Diversification
4. Internal Organisation
5. Ownership and Control

Transferable skills

Apart from attaining and improving subject specific skills the module enables students to develop and enhance a variety of transferable skills. Attendance at lectures requires students to listen and digest material and take structured notes. Participation in tutorials involves prior preparation together with communication and presentation during class. The study sheets assist students in organising their thoughts, reading and preparation of notes and self-test accumulated knowledge as they progress through the module. All aspects of the module necessarily involve time management skills.

The final examination requires rigorous preparation and assimulation of material prior to structured thought and essay writing within a fixed time period.

Reading Lists

Books
** Recommended Text
Lipczynski, J, Wilson, J and Goddard, J (2005) Industrial Organization: Competition, Strategy, Policy 2nd edition. Prentice Hall
Douma, Sytse Economic Approaches to Organizations edition 3r.e. . Financial Times Prentice Hall 273651994
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Economics of the Firm Blackwell 631140751
** Supplementary Text
Milgrom, Paul R "Economics, organization, and management" Englewood Cliffs, NJ : Prentice-Hall 132246503
Milgrom, Paul R "Economics, organization, and management" Englewood Cliffs, NJ : Prentice-Hall 132246503
Milgrom, Paul R "Economics, organization, and management" Englewood Cliffs, NJ : Prentice-Hall 132246503
Milgrom, Paul R "Economics, organization, and management" Englewood Cliffs, NJ : Prentice-Hall 132246503
Firms,Organizations and Contracts Oxf.U.P. 198774354
Douma, Sytse Economic Approaches to Organizations edition 3r.e. . Financial Times Prentice Hall 273651994
Douma, Sytse Economic Approaches to Organizations edition 3r.e. . Financial Times Prentice Hall 273651994
Economics of the Firm Blackwell 631140751
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Economic Nature of the Firm edition 2r.e. . Camb.U.P. 521556287
Economic Nature of the Firm Camb.U.P. 521311403
Douma, Sytse Economic Approaches to Organizations edition 3r.e. . Financial Times Prentice Hall 273651994
Milgrom, Paul R "Economics, organization, and management" Englewood Cliffs, NJ : Prentice-Hall 132246503
Milgrom, Paul R "Economics, organization, and management" Englewood Cliffs, NJ : Prentice-Hall 132246503
Economics of Transaction Costs E.Elgar Pub. 1858989507
Economics of the Firm Blackwell 631140751
Economics of the Firm Blackwell 631140751
Economics of the Firm Blackwell 631140751
Economics of the Firm Blackwell 631140751
Douma, Sytse Economic Approaches to Organizations edition 3r.e. . Financial Times Prentice Hall 273651994
Douma, Sytse Economic Approaches to Organizations edition 3r.e. . Financial Times Prentice Hall 273651994
Handbook of Industrial Organization North-Holland Pub.Co. 444704345
Williamson, Oliver E. Industrial Organization E.Elgar Pub. 1852781645
Thompson, Steve "Internal organisation, efficiency and profit" Oxford : Philip Allan 860031837
Williamson, Oliver E The Nature of the firm New York ; Oxford : Oxford University Press 195065905
Transaction Costs,Markets and Hierarchies Blackwell 631188983

Notes

This module is at CQFW Level 6