New Institutional Economics

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PROGRAM [Final version will be prepared before 1 December 2006]

*Indicates Required Reading to be provided to the students in advance as a syllabus (available by 03/01/2007).

[Numbers in squared brackets indicate number of pages]

*Required: 249 pages; Recommended: 205 pages

All the material will be provided at a Blackboard Internet Site, specifically for this course.

MONDAY, FEBRUARY 5

MorningSession:

Institutions (and History) Matter

*Williamson (2000a) [18*]; *Rodrik, et. al. (2000) [34*]; *Coase (1988) [7]; North (1996) [35]; Nelson & Sampat (2001) [23]

Afternoon Session:

Discussion and selection of paper topic: focus, literature, time frame

TUESDAY, FEBRUARY 6

MorningSession:

Governance: Transaction Cost Economics

*Williamson (1989) [47*]; Masten (1996) [22]; Allen and Lueck (2002) [37]

Bargaining (Laura L.)

*Kvaloy (2006) [26*]; Hueth and Marcoul (2002) [18]

Afternoon Session:

Exercises on Bargaining (Case study on California Canning Peach Association )

WEDNESDAY, FEBRUARY 7

Complete Contracting: Adverse Selection & Moral Hazard

*Bogetoft & Olesen (2002) [56*]

Afternoon Session

Exercises based on the cases by Bogetoft & Olesen (2002)

THURSDAY, FEBRUARY 8

Incomplete contracting: Contracting on Decision Rights

*Baker, Gibbons, Murphy [30*]; *Whinston (2001) [5*]; Barzel (2003) [15]

Afternoon Session

Exercises based on Whinston (2001) and Baker, Gibbons, Murphy

FRIDAY, FEBRUARY 9

Chains, Networks, Hybrids and the New Agricultural Economy

*Karantininis (2006) [30*]; Lazzarini,S.G., F.R.Chaddad, and M.L.Cook [15]; Powell (1990) [40]

Afternoon Session

Presentations of paper proposals by students

READINGS

Allen,D.W. and D.Lueck (2003). The Nature of the Farm: Contracts, Risk and Organization in Agriculture. MIT press, 2003. CH 9: 167-204

*Baker, G., R. Gibbons, and K.J. Murphy, (2006), “Contracting for Control”, Working Paper, MIT

Barzel,Y. (2003). “Property Rights in the Firm.” in Anderson & McChesney ed. Property Rights: Cooperation, Conflict and Law.. Princenton University Press: 43-58

*Bogetoft, P.; and H.B. Olesen, (2002), Design of Production Contracts: Lessons from Theory and Agriculture. CBS Press: 17-73

*Coase,R.H. “The institutional structure of production.” (1992). American Economic Review, 82(4): 713-719

*Rodrik, Dani, Arvind Subramanian, and Francesco Trebbi. (2004). Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development. Journal of Economic Growth, 9: 131-165

Hueth, Brent and Phillipe Marcoul, Observations on Cooperative Bargaining in the U.S. Agricultural Markets, 2002. Center for Agricultural and Rural Development Iowa State University.

*Karantininis, K. (2006), Governance in the new agriculture, KVL, Working paper

*Kvaloy, Ola. , “Self-enforcing contracts in agriculture”, European Review of Economics, Vol. 33(1) (2006): 73-92.

Lazzarini,S.G., F.R.Chaddad, and M.L.Cook "Integrating supply chain and network analyses: The study of netchains." Chain and network science(2001), 1(1): 7-22.

Masten,S.E. Transaction-Cost Economics and the Organization of Agricultural Transactions. Advances in Applied Microeconomics - Industrial Organization. M.R.Baye, ed. 2000, CH 7: 173-195

Nelson, R.R. and B.N. Sampat, (2001), “Making sense of institutions as a factor shaping economic performance”, Journal of Economic Behaviour & Organization 44(1): 31-54

North,D.C. Institutions, Institutional Change and Economic Performance. Cambridge, UK: Cambridge University Press, 1996. CH 1-4: pp. 1-35

Powell,W.W. "Neither Market Nor Hierarchy - Network Forms of Organization." Research in Organizational Behavior 12(1990): 295-336.

*Whinston,M.D. "Assessing the property rights and transaction-cost theories of firm scope." American Economic Review 91(2001): 184-188.

*Williamson,O.E. (1989) "Transaction Cost Economics." Handbook of Industrial Organization I: 135-82.

*Williamson,O.E. , "The new institutional economics: Taking stock, looking ahead." Journal of Economic Literature 38(2000): 595-613.

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