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Organisations, Economics and Incentives (ECON30017)

Undergraduate level 3Points: 12.5Not available in 2019

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Overview

Year of offerNot available in 2019
Subject levelUndergraduate Level 3
Subject codeECON30017
FeesSubject EFTSL, Level, Discipline & Census Date

This subject is concerned with the economics of asymmetric information, when agents may have private knowledge, take hidden actions, and attempt to manipulate the knowledge, information and incentives of others. Using game theory and information economics it will cover the main techniques and results of principal-agent theory and contract theory. It will introduce students to the principles of economic design in asymmetric information environments. These tools will be applied to a variety of topics and case studies, performance incentives, regulation, government procurement, structure of insurance markets, monopoly behaviour, agricultural contracts and share cropping.

Intended learning outcomes

  • Understand the concepts of economics of information and be able to apply them to explain the contracts within organisations
  • Analyse a firm’s behaviour under different contractual structures

Generic skills

  • High level of development: problem solving.

  • Moderate level of development: application of theory to practice; interpretation and analysis; critical thinking; evaluation of data and other information.

  • Some level of development: statistical reasoning; receptiveness to alternative ideas.

Eligibility and requirements

Prerequisites

The following:

Code Name Teaching period Credit Points
ECON30010 Microeconomics
Semester 1
12.5

Corequisites

None

Non-allowed subjects

None

Recommended background knowledge

Please refer to Prerequisites and Corequisites.

Core participation requirements

The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.

Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home

Assessment

Description

  • A 2-hour end-of-semester examination (50% or 60%)
  • A mid-semester examination in Week 7 (20% or 30%)
  • An in-course assignment totalling no more than 2000 words due in Week 3, 5, 9, 11 (20%)
  • The final mark will be calculated by weighting the end-of-semester exam at 50% and the mid-semester exam at 30% OR by weighting the end-of-semester exam at 60% and the mid-semester exam at 20%, whichever gives the higher mark to the student.

Dates & times

Not available in 2019

Time commitment details

Estimated total time commitment of 170 hours

Further information

  • Texts

    Prescribed texts

    You will be advised of prescribed texts by your lecturer.

  • Breadth options
  • Available through the Community Access Program

    About the Community Access Program (CAP)

    This subject is available through the Community Access Program (also called Single Subject Studies) which allows you to enrol in single subjects offered by the University of Melbourne, without the commitment required to complete a whole degree.

    Entry requirements including prerequisites may apply. Please refer to the CAP applications page for further information.

  • Available to Study Abroad and/or Study Exchange Students

    This subject is available to students studying at the University from eligible overseas institutions on exchange and study abroad. Students are required to satisfy any listed requirements, such as pre- and co-requisites, for enrolment in the subject.

Last updated: 10 April 2019