On completion of the course the students will be able to:

• delineate the characteristics of the firm as a transaction mode
• give a contractual picture of the characteristics of the firm
• discuss the objectives of the firm, to look at the legal form of the firm and its implications
• study the implications of institutional framework and ownership control on performance (the governance of the firm)
• analyze the investment and growth of the firm from a corporate governance perspective to look at merger and acquisitions as a means for growth.

• use models for analysing real world phenomena within firms, industry and competition policy
• apply economic concepts that have a broad use for decision making (e.g. opportunity costs, quasi-rents, principal agent relationship, strategic behaviour, transaction costs, vertical integration, and the relevance of marginal considerations)
• demonstrate ideas and solve problems using graphical, tabular, algebraic, and advanced calculus-based techniques

• conduct positive and normative analysis of real world industry, firm and competition policy phenomena

Important elements of the course are:

• Firms, organisations, and contracts
• Corporate governance and firm objectives
• Theory of the firm and costs
• Market structures
• Information and advertising
• Dynamic models
• Vertical integration
• Business practices
• Strategic behaviour
• Government policies and their effects

The course is delivered through lectures, exercise classes and group assignments.

The teaching is conducted in English.

60 credits in Business Administration or Economics includingIntermediate Microeconomic Theory (or the equivalent).

The course is graded A, B, C, D, E, FX or F.

Learning outcomes Skills and Abilities and Judgement and Approach will be examined by one compulsory assignment. Learning outcomes Knowledge and Understanding,Skills and Abilities and Judgement and Approach will be examined in an individual written examination.

Name of the Test	Value	Grading
Examination1,2	7.5 credits	A/B/C/D/E/FX/F

¹ Determines the final grade of the course, which is issued only when all course units have been passed.
² The written examination accounts for 100% of the course credit and course grade.

It is the responsibility of the examiner to ensure that each course is evaluated. At the outset of the course, evaluators must be identified (elected) among the students. The course evaluation is carried out continuously as well as at the end of the course. On the completion of the course the course evaluators and course examiner discuss the course evaluation and possible improvements. A summary report is created and archived. The reports are followed up by program directors and discussed in program groups and with relevant others (depending on issue e.g. Associate Dean of Education, Associate Dean of faculty, Director of PhD Candidates, Dean and Director of Studies). The next time the course runs, students should be informed of any measures taken to improve the course based on the previous course evaluation.

JIBS students are expected to maintain a strong academic integrity. This implies to behave within the boundaries of academic rules and expectations relating to all types of teaching and examination.
Copying someone else’s work is a particularly serious offence and can lead to disciplinary action. When you copy someone else’s work, you are plagiarizing. You must not copy sections of work (such as paragraphs, diagrams, tables and words) from any other person, including another student or any other author. Cutting and pasting is a clear example of plagiarism. There is a workshop and online resources to assist you in not plagiarizing called the Interactive Anti-Plagiarism Guide.
Other forms of breaking academic integrity include (but are not limited to) adding your name to a project you did not work on (or allowing someone to add their name), cheating on an examination, helping other students to cheat and submitting other students work as your own, and using non-allowed electronic equipment during an examination. All of these make you liable to disciplinary action.

• Incentives - Motivation and the Economics of Information, by Donald E.Campbell, Cambridge University press, second edition, 2006
• Complementary journal articles, to be indicated during the course