Organizational Economics

Theory and Applications in Modern Organizations

Brandenburg University of Technology Module 12146 • Summer Semester • 6 Credits Graduate Level

Course Overview

Students are familiar with the relevant issues in organizational economics and can deal with them by applying decision and game theory and institutional economics. Students understand the conditions of functioning organizational structures and are able to transfer their knowledge to various organizational situations. They develop self-dependently proposed solutions to specific problems.

Course Objectives & Contents

Students learn to identify and analyze organizational problems and develop solution concepts, based on organization and microeconomic theories (e.g. theoretical concepts on property rights, transaction costs and the principal-agent theory). Within the microeconomic theory, the focus is on the approach of institutional economics and industrial economics.

The course offers an introduction to empirical investigations and shows results of current research outputs. Using digital solutions for experimental economics in the classroom (ClassEx), we develop some economic theories based on own decision in experiments.

Key Topics

Theoretical Foundations

  • Transaction Cost Economics
  • Agency Theory
  • Property Rights Theory
  • Institutional Economics

Organizational Design

  • Firm Boundaries
  • Hierarchies vs. Markets
  • Organizational Structure
  • Coordination Mechanisms

Governance & Control

  • Corporate Governance
  • Board Effectiveness
  • Executive Compensation
  • Performance Measurement

Modern Applications

  • Digital Organizations
  • Platform Economics
  • Network Organizations
  • Blockchain Governance

Case Studies

Tech Giants

Analysis of organizational structures at Google, Amazon, and Meta, examining how they manage scale, innovation, and coordination.

Financial Institutions

Governance challenges in banks and investment firms, focusing on risk management and regulatory compliance.

Blockchain Organizations

Decentralized autonomous organizations (DAOs) and their governance mechanisms compared to traditional corporate structures.

Research Integration

This course incorporates cutting-edge research in organizational economics, including:

  • Recent developments in behavioral organizational economics
  • Impact of digital transformation on organizational design
  • Sustainability and stakeholder capitalism perspectives
  • Cross-cultural variations in organizational governance
  • Emerging forms of work and employment relationships

Course Structure

Lecture Component

2 hours per week covering theoretical foundations and current research in organizational economics.

Exercise Sessions

2 hours per week for practical applications, problem-solving, and ClassEx experiments.

Self-Study

120 hours of independent study using lecture scripts and literature available on BTU e-learning portal (Moodle).

Experimental Learning

Digital classroom experiments (ClassEx) to develop understanding of economic theories through personal decision-making.

Assessment Structure

Continuous Assessment (MCA)

  • Team Homework (30%): Hand in of 2 homework assignments in teams (each 15%)
  • Written Examination (70%): 90-minute comprehensive examination covering course material

Note: No prerequisites required. Performance verification is graded.

Course Information

  • Language: German (taught and examined)
  • Duration: 1 semester
  • Frequency: Every summer semester
  • Credits: 6 ECTS
  • Prerequisites: None mandatory, none recommended
  • Participant Limit: None

Career Applications

Students completing this course are well-prepared for roles in:

  • Strategic consulting and organizational development
  • Corporate governance and risk management
  • Policy analysis and regulatory affairs
  • Academic research and teaching
  • Executive management and leadership positions

Teaching Materials

Primary Resources:

  • Lecture-based scripts with appropriate references available at BTU e-learning portal (Moodle)
  • Digital solutions for experimental economics (ClassEx platform)

Study Programs:

  • M.Sc. Applied Mathematics (research-oriented profile)
  • M.Sc. Business Administration (research-oriented profile)
  • B.Sc./M.Sc. Business Engineering (various profiles)
  • International degree programs in Business Engineering

Course Inquiry

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