Contract Theory and Property Rights
The course introduces the main problems of the economics of property rights
and contracts. We will start by considering incomplete transaction cost and contract theories
focusing on the efficient arrangements that arise under alternative
technological characteristics of the economy including the human capital
endowments of the agents. We will extend the assumptions concerning the
incompleteness of contracts and examine the feedback of ownership
arrangements on property rights. The understanding of the multiplicity of
technological and property rights arrangements is the ultimate goals of the
The students should acquire a critical understanding of the foundations of
microeconomic theory and a comprehension of the methodologies of comparative institutional analysis.
Students are encouraged to write an essay and give a talk during the course. The essay mark is averaged with the final exam mark only if the former is higher than the latter.