An exploration of the costs of organizing economic activity. Topics include the determination of the scale and scope of the firm, the consequences of separating control from ownership, and the transaction costs of contracting in the marketplace. Theoretical work will be followed by case studies of several industries, including aerospace, coal, oil, air traffic control, and automobile. Prerequisite: ECON*200 and ECON*202, or permission of the instructor. Distribution Requirements: SB.