Organization Theory and Its Applications

Organization theory is a fast-developing field of microeconomics. Organizational approaches are now used in a wide range of topics in business studies. They are based on information economics, contract theory, and mechanism design. This book introduces such organizational approaches and how to adopt them as business applications. The book presents the theory in the first two chapters and proceeds to cover the applications of the theory in the three chapters that follow. The theory lays the foundation and the applications illustrate how the theory can be used in a wide range of business problems. The book covers many concepts and ideas in organization theory, including complete contracts, incomplete contracts, allocation of control rights, option contracts, convertibles, and joint ventures, concisely. It will be of use to third-year undergraduates and above, as well as Master's- and Ph.D-level students in business schools.