Incentives in Organizations (English)

Scope and Course number: Weekly Lecture (10579200) and Tutorial (10579240), together 10 ECTS

Exam Written exam at the end of the semester (60 minutes)

The lecture and tutorium incentives in organizations are based on the principal agent theory. From this theory financial and economic solutions that overcome the conflict of interests between employer and employee. Besides the most widely used theories, estimation techniques and empirical results are presented and discussed.

The aim of the lecture and tutorium is to enable students to understand and apply advanced theories, estimation techniques and empirical results in the area incentives in organisation on the basis of scientific literature.

Literature will be announced in class.

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Content

1. Principal-agent theory

2. Do top managers earn too much? 

3. Performance-based payment

4. Implementation of performance-based payment in companies

5. Seniority payment

6. Financial incentives to work after retirement

7. Wage bargaining

8. Efficiency wages 

9. Team incentives