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FAI3102 Economics, Organization and Incentives- Introduction Course 7.5 credits

Course offering missing for current semester as well as for previous and coming semesters
Headings with content from the Course syllabus FAI3102 (Spring 2019–) are denoted with an asterisk ( )

Content and learning outcomes

Course contents

  • Does Organization matter?
  • Using prices for coordination and motivation.
  • Coordinating plans and actions; prices vs quantities, centralisation-decentralisation.
  • Bounded rationality and private information: complete vs incomplete contracts, adverse selection, signalling.
  • Moral hazard and performance incentives.
  • Risk sharing and incentive contracts.
  • Rents and efficiency: The efficiency wage theory, reputation, influence activities.
  • The concept of ownership. Efficient allocation of ownership.
  • The boundaries and structure of the firm.
  • Financial structure, ownership and corporate control.

Intended learning outcomes

The general purpose of the course is to make you familiar with modern economic theory related to choice of organizational structure on different levels (nation, firm etc), including the design of contracts in different situation. A crucial aspect is then what incentives different alternatives structures/contracts lead to.

Course disposition

No information inserted

Literature and preparations

Specific prerequisites

Admission to postgraduate studies.

Recommended prerequisites

No information inserted


No information inserted


The literature consists of a text book and scientific articles.

The course literature is announced at least four weeks before course start.

Examination and completion

If the course is discontinued, students may request to be examined during the following two academic years.

Grading scale

P, F


  • TEN1 - Exam, 7.5 credits, grading scale: P, F

Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.

The examiner may apply another examination format when re-examining individual students.

Opportunity to complete the requirements via supplementary examination

No information inserted

Opportunity to raise an approved grade via renewed examination

No information inserted


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Ethical approach

  • All members of a group are responsible for the group's work.
  • In any assessment, every student shall honestly disclose any help received and sources used.
  • In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.

Further information

Course web

Further information about the course can be found on the Course web at the link below. Information on the Course web will later be moved to this site.

Course web FAI3102

Offered by

ABE/Real Estate Planning and Land Law

Main field of study

No information inserted

Education cycle

Third cycle

Add-on studies

No information inserted

Postgraduate course

Postgraduate courses at ABE/Real Estate Planning and Land Law