AEP-31806 Economic Analysis of Coordination


Credits 6.00

Teaching methodContact hours
Individual Paper2
Independent study0
Course coordinator(s)dr. ir. JHM Peerlings
Lecturer(s)dr. ir. JHM Peerlings
Examiner(s)dr. ir. JHM Peerlings

Language of instruction:


Assumed knowledge on:

Institutional Economics and Economic Organization Theory, Microeconomics.


A coordination mechanism is a subsystem of the social system that coordinates the activities of the persons or organizations within it. Wherever a relation exists between two or more persons or organizations, their activities require coordination in some form. The focus of this course is on the study of coordination problems and solutions to overcome them. Examples of coordination problems / solutions include: the management of interdependent activities (such as the vertical stages of production in agro-food chains); providing the right incentives in contracts; preventing depletion of natural resources due to overuse and the provision of public goods like landscapes and biodiversity. The characterizing feature of such problems is that cooperation between individuals would lead to efficient outcomes, but that deviating from the efficient cooperative outcome may be rational for individuals in cases of asymmetric information or uncertainty. As a result, transactions may not be undertaken and economic growth and the provision of public goods can be hampered. Our interest lies with the structure and features of organizational solutions (such as contracts and mergers) that mitigate such economic coordination problems. Content-wise the course will build on the concepts and theories that were introduced in the course aep-20806 (Institutional Economics and Economic Organization Theory). This course will add to aep-20806 by emphasizing game-theoretic perspectives and empirical applications. To this end, students are required to have a strong background in microeconomic thinking and calculations.

Learning outcomes:

After successful completion of this course students are expected to be able to:
- apply theoretical knowledge on economic coordination to current topics in the world of business, development, natural resource management, and other;
- make calculations based on quantitative models applied to economic coordination problems;
- interpret the results of academic research in the field of economic coordination;
- distinguish advantages and disadvantages of different methodological approaches for the analysis of economic coordination problems;
- write a research proposal within the field of economics that identifies a clear research objective, a suitable theoretical approach and a clear methodological design.


- attending lectures and studying the materials;
- attending practical sessions with modelling exercises;
- writing a research proposal.


- tests (There will be two tests during the 6-week lecturing period. The score for each test has to be at least 5/10. Re-tests will be organized in the re-exam period. The average score for the two tests will count for 75% of the final mark for the course);
- research proposal (The score for the research proposal has to be at least 5/10. The research proposal will count for 25% of the final mark for the course).


Required reading: See course guide.
The course is supported by a Brightspace site.

Compulsory for: BEBEconomics and GovernanceBSc6AF
Compulsory for: WUECPBSc Minor Economics and Policy6AF