What activities does the organization engage in? How is the organization structured? How are members motivated to work on behalf of the organization? We will consider these questions by primarily relying on economic analysis but also take up some of the issues from the vantage of other social sciences.
Video about Principal-Agent model and associated Powerpoint
This is the video I mentioned in class. I made a slight goof in the recording, so there is more black on the sides than there should be. If you watch it full screen and on a computer it shouldn't matter. On a phone, it might be too small. This is much more detail than I provided in class last week. It covers the algebra of the two state model and that is done in some depth. On the last slide there is an embedded spreadsheet that gives the graphical approach to the same model. It might be too much for you. The Excel homework (which I hope to post tomorrow) does the graphical approach in a step by step manner.