New Institutional Economics is an economic school of thought which evolved in the 1970s and is an extension of neoclassical economics, which also incorporates institutions. Institutions mean in this context social and legal norms governing the economic behavior of individuals. Individuals are still seen as rational and trying to maximize their economic benefit, but the influence of cognitive biases as well as transaction costs is considered. One focus of the institutional economic framework is the analysis of organizations. Here, the fit between the structure and the strategy of the organization can be analyzed. This is done e.g. by looking at property rights, transaction and agency costs.
With the case example of the outsourcing activities of Philips, MIPLM students answered the following tasks:
1 . What were the reasons for the Philips IP&S outsourcing activities?
2 . Analyze the reasoning about outsourcing within an institutional economic framework (property rights theory, transaction cost theory, agency theory).
3 . Explain the difference of the outsourcing schemes within an institutional economic framework.
4 . Explain the role of IT within an institutional economic framework.
5 . Explain the role of quality checks within an institutional economic framework.
Claire Laurens de Lopez, Clement Lim, Greta Zekiene, Konstantinos Kontogiannis, Merve Şimşek, Mohsen Ahmadi, Nora Rüter, Peter Conlon, Steffen Rutter
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Group 2 :
Maria Boicova-Wynants, Yanan Huang, Andrea Foglia, Andreas Werner, Ricardo Cali, Sinara Travisani Cardozo, Anita Yaryna, Timofey Rubchenko, Johannes Holzmair
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Felipe Bustos, Terita Kalloo, Sachin Seshadri, Véronique Bolinches, Rita Labundy, Anders Isaksson, Branimir Puškarić, Nina Kolar, Shu-Pei Oei
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Thanks to Centre d’Etudes Internationales de la Propriété Intellectuelle – CEIPI If you want to learn more: Follow us at IP Business Academy