EC951-7-AU-CO:
Economics of Incentives

The details
2024/25
Economics
Colchester Campus
Autumn
Postgraduate: Level 7
Current
Thursday 03 October 2024
Friday 13 December 2024
20
01 March 2024

 

Requisites for this module
(none)
(none)
(none)
(none)

 

(none)

Key module for

MSC LN1412 Financial Economics and Accounting,
MSC L10412 Management Economics,
MSC L104EB Management Economics,
MSC L104JS Management Economics,
MSC L1N212 Economics of Business and Management

Module description

This module aims to provide students with a good intuitive and formal understanding of the basics of contract theory, incentive theory, and the theory of the firm.


Students should understand how to apply these to real world issues in policymaking, finance, and management, how these fit into the broader economic models and discussion, and to use this in conducting research. In this context, they should be able to set up a simple formal model, understand its key assumptions and components, derive its predictions, explaining the intuition behind these results.

Module aims

The aims of this module are:



  • To provide students with a good intuitive and formal understanding of the basics of contract theory, incentive theory, and the theory of the firm.

  • To give students an understanding of how to apply these to real world issues in policymaking, finance, and management, how these fit into the broader economic models and discussion, and to use this in conducting research.

  • To enable students to set up a simple formal model, understand its key assumptions and components, derive its predictions, explaining the intuition behind these results.

Module learning outcomes

By the end of this module, students will be expected to be able to:



  1. Attain a deeper understanding of the principles behind compensation schemes, and the trade-offs at play in setting incentives.

  2. Gain a broad understanding of key issues related to the scope of the firm that will be relevant to private enterprise decisions, merger analysis, and government procurement.

  3. Gain logical thinking skills, and the ability to build a model distilling the essence of the problem, abstracting from complications, but being aware of the costs of such simplifications.

  4. Discuss economic theory in plain language, relating this to real world issues and empirical data.

  5. Gain literacy and numeracy skills, as well as research, and communication skills.

Module information

No additional information available.

Learning and teaching methods

This module will be delivered via:

  • One 2-hour lecture per week.
  • One 1-hour class per week.

Bibliography*

This module does not appear to have a published bibliography for this year.

Assessment items, weightings and deadlines

Coursework / exam Description Deadline Coursework weighting
Exam  Main exam: In-Person, Open Book, 120 minutes during January 
Exam  Reassessment Main exam: In-Person, Open Book, 120 minutes during September (Reassessment Period) 

Exam format definitions

  • Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
  • In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
  • In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
  • In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary, for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.

Your department will provide further guidance before your exams.

Overall assessment

Coursework Exam
50% 50%

Reassessment

Coursework Exam
0% 100%
Module supervisor and teaching staff
Dr Aditya Kuvalekar, email: a.kuvalekar@essex.ac.uk.
Lectures & Classes: Dr Aditya Kuvalekar
For further information, send an email message to pgteco@essex.ac.uk.

 

Availability
Yes
No
No

External examiner

Dr Domenico Moro
university of Birmingham
Lecturer
Resources
Available via Moodle
Of 14 hours, 14 (100%) hours available to students:
0 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s), module, or event type.

 

Further information
Economics

* Please note: due to differing publication schedules, items marked with an asterisk (*) base their information upon the previous academic year.

Disclaimer: The University makes every effort to ensure that this information on its Module Directory is accurate and up-to-date. Exceptionally it can be necessary to make changes, for example to programmes, modules, facilities or fees. Examples of such reasons might include a change of law or regulatory requirements, industrial action, lack of demand, departure of key personnel, change in government policy, or withdrawal/reduction of funding. Changes to modules may for example consist of variations to the content and method of delivery or assessment of modules and other services, to discontinue modules and other services and to merge or combine modules. The University will endeavour to keep such changes to a minimum, and will also keep students informed appropriately by updating our programme specifications and module directory.

The full Procedures, Rules and Regulations of the University governing how it operates are set out in the Charter, Statutes and Ordinances and in the University Regulations, Policy and Procedures.