Fall 2019 - ECON 426W D100

Industrial Organization: Governance and Institutions (3)

Class Number: 3632

Delivery Method: In Person

Overview

  • Course Times + Location:

    Sep 3 – Dec 2, 2019: Mon, 2:30–4:20 p.m.
    Burnaby

    Sep 3 – Dec 2, 2019: Wed, 2:30–3:20 p.m.
    Burnaby

  • Exam Times + Location:

    Dec 7, 2019
    Sat, 8:30–11:30 a.m.
    Burnaby

  • Prerequisites:

    ECON 302.

Description

CALENDAR DESCRIPTION:

A study of how markets, firms and other institutions are organized using information and transaction cost theories. Topics covered may include: theories of the firm (governance, structure, ownership, signaling and screening behavior); theories of non-market institutions (marriage, non-profit organizations, governments); institutional theories of growth and economic history; and the organization of markets (reputations, contracts, vertical control). Emphasis will be given to covering a limited number of issues and theoretical perspectives in detail rather than attempting a broad survey of new institutional economics. Students with credit for ECON 426 may not take this course for further credit. Writing.

COURSE DETAILS:

We will explore possible explanations for the fact that large firms are normally controlled by capital suppliers rather than labor suppliers.  The first step is to study a range of cases where firms are managed by their employees, and the next step is to develop economic concepts about the organization of firms.  We will then consider work incentives, capital constraints, risk aversion, collective choice, and other stories about why investors usually control firms.  We will examine the economic theory behind each story and the empirical evidence that tends to support or contradict it.   Some policy issues will also be addressed.  Should employees be represented on a firm's board of directors?  Does it make any sense to subsidize purchases of corporate stock by employees?  Should governments encourage worker takeovers of closing plants or failing firms?  We will probably not reach any unanimous conclusions on these issues, but after finishing the course your ideas should be clearer than when you began.   

We will spend one week on each chapter of the required textbook.  The chapter titles are as follows:
1.         Introduction                                    
2.         Normative Perspectives                                    
3.         Workers' Control in Action (I)                                    
4.         Workers' Control in Action (II)                                    
5.         Conceptual Foundations                                    
6.         Explanatory Strategies                                    
7.         A Question of Objectives                                    
8.         Views from Economic Theory (I)                                    
9.         Views from Economic Theory (II)                                   
10.       Transitions and Clusters                                   
11.       Toward a Synthesis                                   
12.       Getting There From Here

Grading

  • Class participation 25%
  • Two papers (25% each) 50%
  • Final exam 25%

Materials

REQUIRED READING:

Governing the Firm: Workers' Control in Theory and Practice, by Gregory K. Dow, New York, Cambridge University Press, 2003.

Department Undergraduate Notes:

***NO TUTORIALS DURING THE FIRST WEEK OF CLASSES***

Students requiring accommodations as a result of a disability must contact the Centre for Accessible Learning (CAL) at 778-782-3112 or caladmin@sfu.ca.

Registrar Notes:

SFU’s Academic Integrity web site http://www.sfu.ca/students/academicintegrity.html is filled with information on what is meant by academic dishonesty, where you can find resources to help with your studies and the consequences of cheating.  Check out the site for more information and videos that help explain the issues in plain English.

Each student is responsible for his or her conduct as it affects the University community.  Academic dishonesty, in whatever form, is ultimately destructive of the values of the University. Furthermore, it is unfair and discouraging to the majority of students who pursue their studies honestly. Scholarly integrity is required of all members of the University. http://www.sfu.ca/policies/gazette/student/s10-01.html

ACADEMIC INTEGRITY: YOUR WORK, YOUR SUCCESS