Theme 3. Transaction cost theory of firm

1. Concept of transaction. Essence and origin of transactional expenses. Transaction of management.

2. Types of transactional expenses.

3. Economy in the conditions of "friction".

4. Management of transactional expenses of firms.

Tasks:

Discussion of the questions;

Work with the glossary;

3. Questions for discussion:

-Name types of the economic organizations by contract system, market transaction and intra firm hierarchy.

- Name economic advantages of the concept of property of the general law assuming divisibility of the property right.

- How liquidity corresponds to transactional expenses?

Essay writing on this theme

Form of activity: practical work, discussion, independent activity, research activity.

Methodical recommendations:Preparation for performance of tasks should be began with studying of recommended literature. To study essence of the transaction cost theory of firm, its task and function, to define the basic principles of functioning this theories. Studying of a material should be accompanied by consideration of the national economy of Republic of Kazakhstan.

Literature: 1-42.

Theme 4. Contract theory

1. Contract theory. Economic actors. Contractual arrangements. Asymmetric information.

2. Behaviour of a decision maker. Numerical utility structures. Optimization algorithm to identify optimal decisions. Labeled moral hazard, adverse selection and signalling.

3. The principal-agent problem (agency dilemma or theory of agency). The "principal". The agent-principal relationship.

Tasks:

Discussion of the questions;

Work with the glossary;

3. Questions for discussion:

- What does characteristics of the parties of the contract: neoclassical, classical and implicit?

- What is the contract on sale?

- What relations arise between the parties at the conclusion of the implicit contract?

Essay writing on this theme

5. Solution of exercises:

Exercize 1. Analyze the Card of industrialization of Kazakhstan for 2010-2014. Allocate the enterprises which function or will function in the territory of the Karaganda region. Give the assessment of their activity.

Exercise 2. Make the table on the theme "Classification of Branches of the Republic of Kazakhstan" and give the short analysis of each of them.

Exercise 3. Give definition to the following terms: industrialization, fuel and energy resources, innovative development, special economic zones

Form of activity: practical work, discussion, independent activity, research activity.

Methodical recommendations:Preparation for performance of tasks should be began with studying of recommended literature. To study essence of the contract theory of firm, its task and function, to define the basic principles of functioning this theories. Studying of a material should be accompanied by consideration of the national economy of Republic of Kazakhstan.

Literature: 1-42.

Date: 2016-03-03; view: 819