Economics and Governance of the Firm

Code:

2ECON10

Acronym:

EGE

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2021/2022 - 2S

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Master in Economics

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
ME	1	Bologna Syllabus	1	-	7,5	56	202,5

Teaching language

Portuguese

Objectives

The main objective of the course is to show how Economics is important for decision making in firms. We hope that at the end of the course students are able to understand and apply some important concepts like: contractual approach of the firm, transaction costs, corporate governance, internal and external incentives, price and non-price competition, strategic commitments.

Learning outcomes and competences

We hope that at the end of the course students are able to understand and apply some important concepts like: contractual approach of the firm, transaction costs, corporate governance, internal and external incentives, price and non-price competition, strategic commitments.

Working method

Presencial

Program

1. Introduction: Why Economics? 2. Markets and Firms: Why do firms exist? Agency relationship. Internal and external incentives. 3. Markets and Organizations: Transaction costs; Contracts and property rights. Corporate Governance. 4. Price and non-price competition: Linear and non linear prices; Advertising and information. 5. Strategic commitments.

Mandatory literature

Besanko, Dranove, Shanley e Schaefer; Economics of Strategy - 7ª edição, Wiley, 2017. ISBN: 978-1-119-37876-1
J. Church e R. Ware; Industrial Organization - A strategic approach, MacGraw-Hill, 2000. ISBN: 0 07 116645 9
L. Pepall, D. Richards e G. Norman; Industrial Organization - Contemporary Theory and Empirical Applications - 5ª edição, Wiley, 2014. ISBN: 978-1- 118-25030-3
José Mata; Economia da Empresa - 7ª edição, Fundação Calouste Gulbenkian, 2011. ISBN: 978 972 31 1299 3

Complementary Bibliography

P. Belleflamme e M. Peitz; Industrial Organization - Markets and Strategies - 2ª ed., Cambridge University Press, 2015. ISBN: 978 1 107 68789 9
J. Roberts; A Empresa Moderna, Dom Quixote, 2008. ISBN: 978 972 20 2939 1
O. Hart; Firms, Contracts and Financial Structure, Oxford University Press, 1995. ISBN: 0 19 828881 6
P. Milgrom e J. Roberts; Economics, Organization and Management, Prentice-Hall, 1992. ISBN: 0 13 223967 1
Jorge Rodrigues; Corporate Governance - Retomar a confiança perdida, Escolar Editora, 2009. ISBN: 978 972 592 257 6
Jean Tirole; The Theory of Corporate Finance, Princeton University Press, 2006. ISBN: 0 691 12556 2
Jorge Rodrigues; Regulação, Ética e Governance: O Mercado da Informação Financeira, RH editora, 2018. ISBN: 978-972-8871-66-6

Teaching methods and learning activities

Theoretical and applyied lectures.

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Exame	60,00
Participação presencial	0,00
Trabalho escrito	40,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	65,50
Frequência das aulas	56,00
Trabalho escrito	81,00
Total:	202,50

Eligibility for exams

All students can make final exam.

Calculation formula of final grade

Essay: 40% of final mark. Exam: 60% of final mark.

Classification improvement

2nd exam.