Course content

The first part of the course provides an introduction to incentive theory with special emphasis on the actors' behavior in situations with incomplete and asymmetric information. Examples of applications of the theory from different markets are given. The second part of the course addresses issues related to contracts between company management and workers, risk sharing, and reward- and incentive systems in companies.

Learning outcome

Knowledge
You learn and should understand
- key incentive theory applied to situations with incomplete and asymmetric information
- the importance of optimal employment contracts and reward- and incentive systems in companies
Skills
You should be able to
- formulate and solve problems related to the actor's behavior in situations with incomplete information
- discuss and give good advice on designing contracts and incentive systems in companies
General competence
You should be able to
- understand key mechanisms and results in reports and research articles addressing topics discussed in the course
- use the course content as a basis for own work, including the master's thesis

Learning methods and activities

2 hours of lectures every week, and 2 hours of practical assignments every other week.
The course has compulsory activity that will be announced at the beginning of the term.

Compulsory assignments

• Compulsory aktivity

Recommended previous knowledge

SØK3004

Required previous knowledge

None

Course materials

Announced at the beginning of the term.

Credit reductions