MPE_NIEK New Institutional Economics

Faculty of Economics and Administration
Spring 2021
Extent and Intensity
2/0/0. 4 credit(s). Type of Completion: zk (examination).
Taught online.
Ing. Michal Kvasnička, Ph.D. (lecturer)
Guaranteed by
Ing. Michal Kvasnička, Ph.D.
Department of Economics - Faculty of Economics and Administration
Contact Person: Mgr. Jarmila Šveňhová
Supplier department: Department of Economics - Faculty of Economics and Administration
Mon 14:00–15:50 P304
Intermediate Microeconomics
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
fields of study / plans the course is directly associated with
there are 9 fields of study the course is directly associated with, display
Course objectives
In this course students will learn the basic principles of the New Institutional Economics. They will get acquainted with the concept of institutions, organizations, transaction costs, bounded rationality, and their mutual relationship, their impact on the economy, and the impact of the economy on their evolution. The students will understand better the operation of the market processes and structures.
Learning outcomes
The students will be able to avoid analytical errors stemming from the static view of the economy which ignores the impact of institutions, organizational structures, transaction costs, and cognitive limits. They will understand consequences of the organizational and financial structure of a firm, and its dependence on the type of the product and market. They will understand long term indirect impact of the governmental antitrust and structural policies. They will be able to understand and explain impact of institutions and organizational structures on economic performance and growth. They will know how to make reasoned predictions about the future path of development of institutions and organizational structures, and how to design convenient organization and ownership structure of a firm.
  • 1. Introduction into the New Institutional Economics
  • 2. Economic equilibrium depends on institutions
  • 3. Transaction costs
  • 4. Property and ownership
  • 5. Nature of firm, its size, structure, and ownership
  • 6. Market organization
  • 7. Governmental bureaucracy
  • 8. Rent-seeking and DUP activities
  • 9. Theory of state
  • 10. Institutional evolution
  • 11. Examples and applications
    required literature
  • EGGERTSSON, Thráinn. Economic behavior and institutions. 1st ed. Cambridge: Cambridge University Press, 1990. xv, 385. ISBN 0521348919. info
    recommended literature
  • NORTH, Douglass Cecil. Institutions, institutional change and economic performance. 1st ed. Cambridge: Cambridge University Press, 1990. 152 s. ISBN 0521397340. info
  • COASE, R. H. The firm the market and the law. Chicago: University of Chicago Press, 1990. vii, 217. ISBN 0226111016. info
  • FURUBOTN, Eirik Grundtvig and Rudolf RICHTER. Institutions and economic theory : the contribution of the new institutional economics. 2nd ed. Michigan: University of Michigan Press, 2008. xviii, 653. ISBN 9780472030255. info
Teaching methods
Assessment methods
The exam is written and consists of a test and three mini-essays.
Language of instruction
Further Comments
Study Materials
The course is taught each semester.
The course is also listed under the following terms Spring 2010, Spring 2011, Spring 2012, Spring 2013, Spring 2014, Spring 2015, Spring 2016, Spring 2017, Spring 2019, Spring 2020.
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