1. Introduction to the economics of the firm. Summary Tomasz Żylicz

2. Overview. What have we learnt 1.Evolution of the theory 2.Who is an entrepreneur? 3.Transaction costs and contracts 4.Property rights 5.Principal-agent models 6.Deregulation and privatisation 7.Summary and conclusions

3. 1.Evolution of the theory Neoclassical theory: markets and prices Opening the „black box” Schumpeter Knight Kirzner Coase

4. 2.Who is an entrepreneur? Innovator? Uncertainty-bearer? Contract manager? Transaction manager?

5. 3.Transaction costs and contracts Limits to market allocation Contracts as a core of the firm Evolution of transaction costs

6. 4.Property rights Property rights as a key concept in modern economics Missing markets Property rights and the distribution of power within a firm

7. 5.Principal-agent models Incentive-compatibility concept Residual claimancy Managerial incentives

8. 6.Deregulation and privatisation Public versus private companies Rent-seeking behaviour Political oversight Efficiency versus equity

9. 7.Summary and conclusions Economic theory of the firm is evolving Property rights, contracts and incentive- compatibility are key concepts Rational behaviour can be far from the classical principle of profit maximisation