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14.26 Economics of Incentives: Theory and Applications

Prereq: 14.01
U (Spring)
12 Units. HASS-S

Provides a rigorous, but not overly technical introduction to the economic theory of incentives and organization together with a varying set of applications. These include, among others, the optimal design of sales and CEO incentive schemes; the impact of incentives on risk taking and innovation; tournament design; the analysis of venture capital and other forms of financial incentive contracts; relational and behavioral aspects of incentive contracts; and various organizational design problems.

B. Holmstrom

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