Course Page

Within the Firm: Managing through Incentives

Course Number:

73341


Faculty

Alexey Kushnir, akushnir@andrew.cmu.edu


Program

Undergraduate Economics


Concentrations

Additional Major in Economics, Additional Major in Economics and Statistics, B.A. in Economics, B.S. in Economics, B.S. in Economics and Mathematical Sciences, B.S. in Economics and Statistics, Minor in Economics


Course Description

We are living in an exciting age of information and knowledge when inspiring employees within a firm becomes increasingly more important. Aligning the objectives of workers, managers, and owners by providing them with appropriate incentives becomes an emerging paradigm in the modern business world. In this course, we learn how to reason about incentives both between managers and employees, managers and owners, and within a team of co-workers. We cover a broad range of topics including principle-agent problem, moral hazard, asymmetry of information, incentive in teams, collective decision making, and repeated interactions. These theoretical underpinnings will be illustrated with actual business experience and case studies. Minimum grade standard of "C" applies only to economics courses.

Format

Lecture: 160min/wk


Textbook

Recommended: Edward P. Lazear, "Personal Economics for Managers", Wiley (1st Edition), 1997


Pre-requisites

(21120 OR 21256) AND (73100) AND (73230)