This course aims at presenting in a simple though rigorous form the main models in contract theory. Contract theory studies the class of relations between allocative efficiency, norms, contractual relations and incentives systems. As such, contract theory forms the formal ground for a variety of managerial and entrepreneurial practices. More to the point, it aims at understanding and managing those phenomena related to surplus creation relative to social interactions under contractual incompleteness’ assumption.

Knowledge and understanding: The main outcome of the course is giving the student both awareness and familiarity with the theory’ main models. At the very same time, a working knowledge of the theory together with an understanding of its applicability to real world situations will be given. Applying knowledge and understanding: The students will be able to identify situations that can lead to inefficiency and useful instruments to mitigate or avoid it. Making judgements: We expect students to be able to assess the sustainability and effectiveness of arrangements meant to govern economic relationships within organization as well as outside them, highlighting their strengths and weaknesses. Moreover, students would be able to get insights about occurrence of specific economic and social phenomenon. Communications Skills: This course will give the students the possibility to acquire and understand major terms and concepts in order to communicate their ideas, proposals, analysis and critical reasoning in an appropriate way, but at the same time being able to convey effectively insights and economic implications to a non-specialized audience. Learning skills: This course will contribute to empower learners giving them very versatile tools that can be applied to many economic contexts. They can also be combined with knowledge from other disciplines to provide more accurate or alternative analysis.

Efficiency, incentive schemes, contractual incompleteness, agency relations, moral hazard, adverse selection. screening, signaling, reputation, Behavioral economics, Behavioral finance

Some slides and lecture notes Nicita, A. e Scoppa, V. Teoria dei Contratti, Carocci, Roma, qualsiasi edizione.

Lectures, cold calling, practices, group work with presentations.

The attending student will be evaluated on the basis of the scores achieved on: 70% of the final grade: 2 group project work (weight 35% each project). Updating and coaching meetings will be scheduled in the course. Through this activity we intend to provide and verify the mastery of a studying and research autonomous method related to the filed. 30% of the final grade: written exam. Final written test consists of multiple choice questions, with which the student have to demonstrate knowledge of the theoretical notions of teaching and know how to apply them in practical cases. The failure to achieve at least a score of 18/30 will result in failure to pass the exam. There will be a distinction between no-attending and attending student. The latter will be considered the student who run the group activity and accept the related grades, and is present at least 80% of the lessons. The no-attending students will have to follow a specific exam program that will be uploaded in Luiss Learn.

Successfully passing the examination and interview