Simon Fraser University
Engaging the World

Course Outlines

Spring 2021 - ECON 426W D100

Industrial Organization: Governance and Institutions (3)

Class Number: 4446

Delivery Method: In Person

Overview

  • Course Times + Location:

    Jan 11 – Apr 16, 2021: Tue, 1:30–2:20 p.m.
    Burnaby

    Jan 11 – Apr 16, 2021: Fri, 12:30–2:20 p.m.
    Burnaby

  • Exam Times + Location:

    Apr 28, 2021
    Wed, 3:30–6:30 p.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 in which 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.

https://sfu-store.vitalsource.com/products/governing-the-firm-gregory-k-dow-v9780511055065?term=9780521522212


Department Undergraduate Notes:

Please note that, as per Policy T20.01, the course requirements (and grading scheme) outlined here are subject to change up until the end of the first week of classes.

Final exam schedules will be released in February. This will allow students to avoid enrollment conflicts, and will significantly reduce instances of exam hardship. If your course has a final exam, please ensure that you are available during the final exam period of April 14 - 26 until you receive confirmation of your exam dates. 

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.

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

Registrar Notes:

ACADEMIC INTEGRITY: YOUR WORK, YOUR SUCCESS

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

TEACHING AT SFU IN SPRING 2021

Teaching at SFU in spring 2021 will be conducted primarily through remote methods. There will be in-person course components in a few exceptional cases where this is fundamental to the educational goals of the course. Such course components will be clearly identified at registration, as will course components that will be “live” (synchronous) vs. at your own pace (asynchronous). Enrollment acknowledges that remote study may entail different modes of learning, interaction with your instructor, and ways of getting feedback on your work than may be the case for in-person classes. To ensure you can access all course materials, we recommend you have access to a computer with a microphone and camera, and the internet. In some cases your instructor may use Zoom or other means requiring a camera and microphone to invigilate exams. If proctoring software will be used, this will be confirmed in the first week of class.

Students with hidden or visible disabilities who believe they may need class or exam accommodations, including in the current context of remote learning, are encouraged to register with the SFU Centre for Accessible Learning (caladmin@sfu.ca or 778-782-3112).