ECONOMICS, WELFARE ORGANIZATION AND POLICIES
Academic Year 2025/2026 - Teacher: Antonio D'AGATAExpected Learning Outcomes
The course addresses the main aspects of business organization from an economic perspective, particularly highlighting its importance in managing interdependencies in the context of a division of labor. By the end of the course, students will be able to answer the following questions: why does society resorts to business organizations rather than the market? What problems arise when economic activity is conducted through businesses? The course will also address some important aspects related to welfare policies.
Course Structure
Required Prerequisites
Attendance of Lessons
Attendance is not mandatory but strongly recommended.
Detailed Course Content
Division of Labor, Markets, and Transaction Costs
The Firm According to Transaction Cost Theory
Asymmetric Information, Inefficiency and Solutions
Interdependencies and Organisation
Working with Diversity: Motivating, Coordinating, and Knowing
Organisational Design Tools
Proposals for Inclusive Capitalism
Textbook Information
2. E. Zaninotto, M. Zamarian, Organizzare. L'impresa tra forme emergenti e progetto, Il Mulino, 2012, Introduzione, Capitoli I, II, III, IV, V (solo pagg. 119-127) e VI.
3. E. Sassoon (a cura di), Per un capitalismo inclusivo. La società più giusta che vogliamo. Harvard Business Review Italia, Strategiqs Edizioni 2022 (with particular reference to the Appendice and to the chapters by Martin, Battilana e Casciaro, Polman e Winston, e Henderson).
By prior agreement with the teacher, the text in point 3 can be replaced by one of the following texts:
- A. Alesina e E.L.Glaeser, Un mondo di differenze. Combattere la povertà negli Stati Uniti e in Europa, Laterza, 2005, Capitoli III, IV, VI (eccetto par. 6.4), VII.
- R.E. Wright, A. Przegalinska, Debating Universal Basic Income. Prons, Cons, and Alternatives, Palgrave MacMillan, 2022.
Course Planning
| Subjects | Text References | |
|---|---|---|
| 1 | Markets and division of labour | Instructor's notes |
| 2 | Markets and transaction costs | Instructor's notes |
| 3 | The market and production coordination | Instructor's notes |
| 4 | The firm and production coordination | Instructor's notes |
| 5 | Asymmetric information and the hold-up problem | Instructor's notes |
| 6 | The nature of the organizational problem: la divisione del lavoro | Zaninotto-Zamarian, Ch. I |
| 7 | Interdependent activities and the size of the firm | Zaninotto-Zamarian, Ch. II |
| 8 | Motivate: aligning individual goals | Zaninotto-Zamarian, Ch. III |
| 9 | Coordinate: aligning individual expectations | Zaninotto-Zamarian, Ch. IV |
| 10 | Knowing: aligning problem-solving paths | Zaninotto-Zamarian, Ch. V par. 1 |
| 11 | Organizational design tools: Governance, Structures and Practices | Zaninotto-Zamarian, Ch. VI |
Learning Assessment
Learning Assessment Procedures
Assessment Criteria and Grading Scale
Examination results are expressed on a scale from 0/30 to 30/30. The “lode” (cum laude) is reserved for outstanding performance. There is no direct equivalence with percentages or GPA. The assessment system is based on the following criteria.
· Fail (0–17): The student does not demonstrate adequate knowledge of the basic course content and/or has not completed the required work.
· 18–20 (Pass – Sufficient): Minimal knowledge of the subject; very limited ability to apply concepts; significant difficulty in critical discussion.
· 21–24 (Fair – Discrete): Adequate command of course topics; correct but basic exposition; frequent need for guidance.
· 25–27 (Good): Solid knowledge of the subject; ability to handle cases and assignments independently, with only minor inaccuracies.
· 28–30 (Very Good – Excellent): Comprehensive and in-depth knowledge; autonomous ability to make connections between themes and sources; clear exposition with no significant errors.
· 30 cum laude (Distinction): Exceptional performance, marked by originality, critical insight, and virtually complete mastery of the subject.
Examples of frequently asked questions and / or exercises
Transaction costs. Solutions to asymmetric information. The firm according to transaction cost theory. The origins of the organisational problem: the division of labor. The team problem and the birth of the organisation. Relationship structure and goal alignment. The alignment of expectations. Coordination management. What is shared value and how is it created according to Porter and Kramer. The new business model according to Martin.