Economic activity is guided not only by the "invisible hand" of the market, but also 
by the "visible hand" of management.  This class uses microeconomic tools and 
concepts to understand organizations.  The course begins with a general study of 
markets versus central planning, focusing on the roles of information, property 
rights, and incentives, and then turns to the nature and the limits of the firm.  A 
series of problems in management organization are then studied.

Introduction and the Economic Way of Thinking
Markets, Organizations, and Knowledge
The Nature of the Firm: Transaction Costs and the "Make-or-Buy" Decision
Contracting Costs and Economic Organization: Agency, Adverse Selection
Decision Rights and the Boundaries of the Firm
Compensation and Motivation
Performance Evaluation
Information Technology and Economic Organization
Mergers and the Market for Corporate Control
Public and Non-Profit Organizations