Reference no: EM133185429

1. Architecture of Markets and Firms

Write a short essay on how and why the "architecture" of markets and the "architecture" of firms help decide how well markets and firms, respectively, deal with imperfect information and incentive problems. As part of your answer, with the aid of some examples, make sure that you discuss why, and in what sense, the information and incentive problems faced by a large hierarchical multi-department corporation are generally likely to be less tractable than the problems faced by markets for specific goods and services.

2. Different Organizational Architectures for Different Kinds of Firms

Write a short essay providing examples of situations where each of these structures is likely to be effective as well as situations where that same structure is likely to be ineffective in achieving the organizational goals of the firms in question.