Economic Foundations


The main aim of this course is to show the power of economic reasoning for understanding a wide variety of aspects of management and organizations.


This course gives an introduction to economic concepts that are essential for research in management. The course starts with an introduction to game theory. Next, game-theoretic concepts are applied to analysing problems firms face every day. The objective of the course is to show how economic reasoning can improve our understanding of traditional topics in finance, management and marketing.


The examination of this course will include homework assignments, presentation of a paper


The compulsory literature for this course consists of at least the following articles:

Gibbons, R., 1997, An introduction to Applicable Game Theory, Journal of Economic Perspectives, 11, 127-149;

Bol, J.C., 2011, The determinants and performance e_ects of managers performance evaluation biases, The Accounting Review, 85, 1549-1575;

Kamphorst, J. and O.H. Swank, 2013, The Role of Performance Appraisals in Motivating Employees;

Rotemberg J.J. and Saloner, 1993, Leadership Style and Incentives, Management Science, 39, 1299-1318;

Visser, B., Swank, O.H. and Crutzen, B.S.Y. (2013). Confidence Management: on Interpersonal Comparisons in Teams. Journal of Economics and Management Strategy;

Also other recent articles of applied economic theory that are of importance to the ERIM Master students will be discussed during the seminars.


Additional info

The timetable for this course can be found in the EUR course guide.

ERIM PhD candidates and Research Master students can register for this course via Osiris Student.