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Contract Design I
Last Updated: 2026-02-05 15:48:41
Abstract
Contract Design I aims to bridge the gap between economic contract theory, contract law, and the writing of real-world contracts. In this course, we take a systematic approach to contract design. This means we first analyze the economic environment in which a transaction takes place, and then engineer contracts that achieve the desired outcome.
Objective
Contracts are agreements between parties to engage in transactions. A good contract creates value by giving parties the right incentives to meet their objectives. A good contract designer scrutinizes the economic situation in which parties find themselves and tailors the contract to the challenges at hand. To help you become sophisticated contract designers, we draw from insights, for which more than half a dozen Nobel Prizes were awarded in the past two decades, and transfer them to the art of writing real-world contracts. In other words, Contract Design I will provide you with analytical tools related to contracting that are invaluable to successful lawyers, business leaders, and startup founders. In Contract Design I, you will be asked to watch a series of videos (10-15 minutes each) that we produced for this course. These video episodes introduce you to key concepts of economic, behavioral, and experimental contract theory. We will cover topics such as moral hazard, adverse selection, elicitation mechanisms, relationship-specific investments, and relational contracting. You can find the welcome video at this link ( https://www.youtube.com/watch?v=CvIdfG70zq0 ). However, this course prioritizes applications of contract design. Therefore, we will use class time to discuss a selection of exciting real-world case studies, ranging from purchases & sales of assets, oil & gas exploration, movie production & distribution, construction & development, M&A deals, to executive compensation and many other types of transactions. ETH students: Your final grade will consist of two components: 1) You are required to take weekly computer-based quizzes during class time. Thus, it is imperative that you attend the lectures to be able to finish the quizzes and pass this course. Moreover, we regularly post questions regarding the case studies that we examine in class. 2) You have to compose short responses to these questions and upload them. Note that UZH students enrolling in this course earn more ECTS on completing this course than ETH students. This is because UZH students must hand in an extensive group project in addition to the weekly quizzes and short responses.
Resources
Lecture Notes
Handouts, prerecorded videos, slides, and other materials
General Information
- Language
- English
- Levels
- DS , DR , MSC
- Frequency
- Yearly recurring
Examination
- Type
- graded semester performance
Registration & Places
- Max Places
- 80
Course Components
| Type | Title | Time & Place | Hours |
|---|---|---|---|
| lecture |
Contract Design I
The course is going to take place twice a week (Monday and Thursday) during the first half of the Semester.
Online lecture: This lecture will primarily take place online. Reserved rooms will remain blocked on campus for students to follow the course from there.
|
|
28 h semesterly |
Offered In
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GESS Science in Perspective (Only the topics listed in this paragraph can be chosen as GESS Science in Perspective. Further below you will find the "type B courses Reflections about subject specific methods and content" as well as the language courses. 6 ECTS need to be acquired during the BA and 2 ECTS during the MA Students who already took a course within their main study program are NOT allowed to take the course again.)
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Type A: Enhancement of Reflection Competence (Suitable for all students. Students who already took a course within their main study program are NOT allowed to take the course again.)
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Type B: Reflection About Subject-Specific Methods and Contents (Subject-specific courses: Recommended for doctoral, master and bachelor students (after first-year examination only). Students who already took a course within their main study program are NOT allowed to take the course again. These course units are also listed under "Type A", which basically means all students can enroll)
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Doctoral Department of Humanities, Social and Political Sciences (More Information at: )
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