| Responsible Department | Institute of Food and Resource Economics | ||||||||||||
| Earliest Possible Year | MSc. 1 year to MSc. 2 year | ||||||||||||
| Duration | One block | ||||||||||||
| Credits | 7.5 (ECTS) | ||||||||||||
| Level of Course | MSc | ||||||||||||
| Examination | Final Examination oral examination All aids allowed Description of Examination: Individual oral examination based on the students prepared papers. Weight: 100 % oral examination 7-point scale, internal examiner | ||||||||||||
| Requirement for Attending Exam | Students must have handed in a 6 page paper on some agreed problem. | ||||||||||||
| Organisation of Teaching | a. Lectures by the instructor b. Exercises | ||||||||||||
| Block Placement | Block 3 Week Structure: B | ||||||||||||
| Language of Instruction | English | ||||||||||||
| Optional Prerequisites | 290055 Micro Economics Any course in microeconomics at intermediate or graduate level | ||||||||||||
| Restrictions | None | ||||||||||||
| Course Content | |||||||||||||
| The course consists of three parts. Special emphasis on each part will be given according to student interest: a. Applied production analysis and b. Applied Contracts c. Cost/surplus Sharing a. The first part of the course use results from various microeconomic theories like production economics, consumer demand, industrial economics, managerial economics and optimizations to consider different aspects of modelling of individual behaviour and their interactions. This part can include various aspects of risk management and/or dynamic considerations, as well as policy analysis. b. The second part of the course focuses on the design of contracts. The course builds on principal-agent theory and applies it to specific contracts found in the agri-food industry. It uses both complete and incomplete contract theory to applications on: Production contracts Land-use contracts Producer payment schemes Contracts between a cooperative and its producer - members Contracts on quality c. The third part of the course focusses on issues of cost and surplus sharing which is an integrated part of the design of contracts. Here we take a deeper look at various allocation rules and their characteristics. | |||||||||||||
| Teaching and learning Methods | |||||||||||||
| a. Class lectures by the instructor b. Exercises and applications | |||||||||||||
| Learning Outcome | |||||||||||||
| The objective of this course is to learn to apply the concepts and techniques taught in the microeconomics theory course and other related courses in economic theory and econometrics, to problems faced by decision-makers in the agri-food industry and business organizations, as well as policy analysts. After completing the course the student should be able to: Knowledge: Know the existing theoretical and applied literature on a. Models on Production analysis, Decisions, Optimization, Risk and uncertainty, policy analysis b. Contract theory and applications on the agri-food industry c. Cost and surplus sharing rules. Skills Understand and practice a. Applied production theory; optimization methods; decision theory; risk analysis b. modern contract theory, specifically: Complete contracting; Incomplete contracting; Mechanism design c. the theory of allocation rules Competences Identify and analyze current issues related to: a. Optimization, Decisions, risk and unscertainty, and policy analysis b. Incentives, risk sharing, coordination and information in the agri-food industry c. cost and surplus sharing in contracts | |||||||||||||
| Course Literature | |||||||||||||
| a. R. Chambers, Applied production analysis, Cambridge 1988 b. P. Bogetoft and H.B. Olesen, (2004), "Design of production contracts", Copenhagen: CBS Press c. P. Bogetoft and H.B. Olesen, (2007), "Cooperatives and payment schemes", Copenhagen: CBS Press d. J.L. Hougaard, (2009), "An Introduction to Allocation Rules", Springer. e. Journal articles | |||||||||||||
| Course Coordinator | |||||||||||||
| Jens Leth Hougaard, jlh@foi.dk, Institute of Food and Resource Economics/Production and Technology Unit, Phone: 353-36814 | |||||||||||||
| Study Board | |||||||||||||
| Study Committee NSN | |||||||||||||
| Work Load | |||||||||||||
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