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2024/2025  BA-BHAAV2485U  Strategic Thinking in Economics and Organisations

English Title
Strategic Thinking in Economics and Organisations

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Quarter
Start time of the course Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 80
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Karol Szwagrzak - Department of Economics (ECON)
Main academic disciplines
  • Organisational behaviour
  • Strategy
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 09-02-2024

Relevant links
Learning objectives
  • Apply economic and game theoretic concepts to model and understand the design and implementation of incentive schemes and other policies
  • Identify appropriate theories to analyse strategic situations
  • Understand the fundamental tradeoffs in collective decisions
  • Formulate and analyse game theoretic models
  • Understand the power and limitations of economic models in the design of organisations and istitutions
Course prerequisites
Microeconomics and calculus (derivatives, maximisation). Familiarity with game theory will be helpful.
Examination
Strategic Thinking in Economics and Organisations:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Spring
Aids Limited aids, see the list below:
The student is allowed to bring
  • USB key for uploading of notes, books and compendiums in a non-executable format (no applications, application fragments, IT tools etc.)
  • Any calculator
  • In Paper format: Books (including translation dictionaries), compendiums and notes
The student will have access to
  • Access to Canvas
  • Advanced IT application package
Make-up exam/re-exam
Same examination form as the ordinary exam
The number of registered candidates for the make-up examination/re-take examination may warrant that it most appropriately be held as an oral examination. The programme office will inform the students if the make-up examination/re-take examination instead is held as an oral examination including a second examiner or external examiner.
Course content, structure and pedagogical approach

The course uses economic and game theoretic tools to introduce business and social science students to the the analysis of strategic situaitons in organizations. By developing general principles for thinking about strategy, the lessons of the course can be applied across a wide spectrum of problems where incentives in organizations matter. Examples include conflict resolution, the design of compensation schemes, counter-terrorism, regulation and tax compliance, and other strategic decision making problems.

 

The course starts by exploring normative foundations: Social Choice theory, Paretian and utilitarian theories about goals as well as their limitations. It then introduces game theoretic models of externalities, coordination problems, and commitment problems to uncover opportunities for policy to improve outcomes. It then studies how policies creates technological and incentive constraints that shape outcomes. Throughout, concepts and models are illustrated and reinforced with discussions of empirical evidence and case studies.
Description of the teaching methods
Lectures, exercises
Feedback during the teaching period
Exercises will be assigned every week. Solutions to exercises discussed in class are available to students giving them a chance to check their ability to solve relevant problems. Solutions to these other relevant exercises will also be provided.

The teacher might offer quizzes giving students a quick indication of their understanding of certain topics.
Student workload
Lectures 38 hours
Exam 8 hours
Preparation 166 hours
Expected literature

Articles. 

 

Political Economy for Public Policy (2016) by Ethan Bueno de Mesquita, Princeton University Press
Last updated on 09-02-2024