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Contract Design I
Last Updated: 2026-02-05 16:02:02
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, Integrative Course Contract Design will provide you with analytical tools related to contracting that are invaluable to successful lawyers, business leaders, and startup founders. We will cover topics such as moral hazard, adverse selection, elicitation mechanisms, relationship-specific investments, and relational contracting and apply the theoretical insights to real-life 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. The course will be held in a flipped class-room model: This means that you will watch learning videos specifically produced for this course ahead of the lecture and we will use the class time to discuss real-world case studies. ETH students: Your grade will consist of two parts: 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. 2) You have to compose short responses to take-home questions on the case studies we discussed in class and upload them. Note that UZH and HSG students enrolling in this course earn more ECTS on completing this course than ETH students. This is because UZH and HSG students must hand in an extensive group project in addition to the weekly quizzes and take-home questions.
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 during the first half of the semester. All lectures will be held in-person.
|
|
28 h semesterly |
Offered In
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Science in Perspective (In “Science in Perspective”-courses students learn to reflect on ETH’s STEM subjects from the perspective of humanities, political and social sciences. Only the courses listed below will be recognized as "Science in Perspective" courses.)
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Type A: Enhancement of Reflection Competence (SiP courses are recommended for bachelor students after their first-year examination and for all master- or doctoral students. All SiP courses are listed in Type A. Courses listed under Type B are only recommendations for enrollment for specific departments.)
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Type B: Reflection About Subject-Specific Methods and Contents (Subject-specific courses. Particularly relevant for students interested in those subjects. All these courses are also listed under the category “Typ A”, and every student can enroll in these courses.)
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Doctorate Humanities, Social and Political Sciences (More Information at: )
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