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Unit of study_
ECOS3003: Hierarchies, Incentives and Firm Structure
2025 unit information
This unit deals with the coordination and motivation problems faced by firms. More specifically this unit examines: whether firms use price or command mechanisms to allocate resources within firms; the problems associated with designing incentive contracts; the principles of efficient contract design and; the real world applications of those principles. The final section deals with the manner in which the coordination and motivation problems faced by firms determines their financial, vertical and horizontal structure.
Unit details and rules
Managing faculty or University school:
Arts and Social Sciences
| Study level | Undergraduate |
|---|---|
| Academic unit | Economics |
| Credit points | 6 |
|
Prerequisites:
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ECOS2001 or ECOS2901 |
|---|---|
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Corequisites:
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None |
| Prohibitions:
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ECON3003 or ECOS2306 |
| Assumed knowledge:
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None |
At the completion of this unit, you should be able to:
- LO1. demonstrate an understanding of important economic factors that help shape the structure of the firm
- LO2. analyse the way an organisation allocates its decision-making rights, the way it rewards its employees and the measures it uses to assess performance are all interrelated
- LO3. understand the concepts of: freeriding; principal agent; incentive compatibility; individual rationality constraint; real and formal authority; prisoners’ dilemma; coordination game; and multitask problems, and be able to apply these concepts to real problems faced by organisations
- LO4. critically evaluate the effect of changes in technology, product market competition and globalisation on these decisions about the internal structure of the businesses, not only from the perspective of the firm (attempting to maximise profit), but also from the perspective of a policy maker (attempting to maximise social welfare).
Unit availability
This section lists the session, attendance modes and locations the unit is available in. There is a unit outline for each of the unit availabilities, which gives you information about the unit including assessment details and a schedule of weekly activities.
The outline is published 2 weeks before the first day of teaching. You can look at previous outlines for a guide to the details of a unit.
| Session | MoA ? | Location | Outline ? |
|---|---|---|---|
|
Semester 1 2025
|
Normal day | Camperdown/Darlington, Sydney |
Outline unavailable
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Modes of attendance (MoA)
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