Micro/IO Group: Contract Theory and Industrial Organization
The micro/IO group at the Center studies (both from a theoretical and an applied perspective) the interactions between three of the major actors in the economy: individuals, private sectors, and governments.
A major goal is to develop ties between the micro/IO group and other groups within the department (in particular with the applied/econometrics group and the development group).
Currently, the group conducts research in the following areas:
- Contract Theory, Auction Theory, and Organizational Design: The group studies explicit and implicit incentive schemes in public and private organizations including reelections, promotions and career concerns. It also studies design of contracts, auctions, and various allocation mechanisms. Their research has applications on the design of electronic markets for telecommunications, spectrum licenses, electricity, e-commerce, mineral rights, and pollution permits.
- Industrial Organization, Government Regulation, and Competition Policy: This group of researchers also studies the structure of business firms and markets and the ways in which the firms in a market interact. They conduct research on government regulation of business with a focus on competition policy and regulation of natural monopolies. Their research has direct implications to business strategies, strategic management, antitrust policies, and government regulation of businesses.
The group consults for a number of government agencies (domestic and international) and industries including airlines, telecommunications and Internet, and financial sectors.