Dr Catherine Thomas

This course is compulsory on the MSc in Management and Strategy. This course is available on the CEMS Exchange, Global MSc in Management, Global MSc in Management (CEMS MIM), Global MSc in Management (MBA Exchange), MBA Exchange, MPA Dual Degree (LSE and Columbia), MPA Dual Degree (LSE and Hertie), MPA Dual Degree (LSE and NUS), MPA Dual Degree (LSE and Sciences Po), MPA Dual Degree (LSE and Tokyo), MSc in Marketing and Master of Public Administration. This course is available with permission as an outside option to students on other programmes where regulations permit.

A knowledge of Mathematics and Economics.

The course uses economic theory to gain insight into issues related to internal organisation, structure, and management of firms. The course will draw on various fields including management science, industrial organisation and microeconomics.

The course deals with three main topics:

• the provision of incentives in organisations;
• the use of information in markets and firms, and;
• the relationship between organisational structures and decisions.

A major theme concerns the question of how to provide incentives efficiently in organisations. Other important themes include efficiency, coordination, incompleteness of contracts and the use of the market versus internal exchange. The implications of asymmetric information are examined. Corporate governance is discussed in a principal-agent framework.

20 hours of lectures and 9 hours of seminars in the MT.

Students on this course will have a reading week in Week 6, in line with Departmental policy.

Main text:

• Roberts J (2004), The Modern Firm. Organizational Design for Performance and Growth, Oxford University Press, UK.

Exam (100%, duration: 2 hours) in the summer exam period.