New York University
Stern School of Business
Summer 2000
Conflict & Decision Making
Professor Seth Freeman
Class 12

I. Video
II. Regulation, Free Markets, or Something Else? The Human Body Parts Scarcity Problem

Please form groups of four. I will then assign your group to one of two sides- either for or against the creation of a free market in human body parts. You will have ten minutes to prepare to debate the issues by coming up with a couple of succinct arguments in favor of your position and one hard question to put to the other side. Next, I will ask one representative from each of the "pro free market" groups to state its case, after which I will ask one representative from the "con" side to state its opposition. Each side will then have a few minutes to cross-examine the other by asking difficult questions of the other.

III. A mystery- Why are there Organizations?

A. Two views
B. A modest proposal
C. Why create organizations?
D. Coase's Theory of the Firm and Other Ideas
E. The vast array of options for working relationships driven by conflicting interests
F. Implication- you can tailor your organization to satisfy conflicting interests

IV. Modern Times- A brief look at the history of ideas about running organizations (time permitting)

A. Taylorization and the use (and misuse) of incentives in organizations
B. Peters and the use (and limits) of 'empowering' workers
C. In praise of conflict and chaos- Jane Jacobs and the Economics of Cities
D. How is Internet changing the choices you face?


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No class July 3; have a great weekend!


A Modest Proposal

"Resolved, that the free market, together with the Internet and other technology of the New Economy makes organization unnecessary. Therefore, be it resolved that we should make it illegal to create any organization of more than ten people and rely completely on markets, contracts, and telecommunications. GM will be broken up and every function will be performed by small groups of contractors who communicate, coordinate and decide how to operate via email, web site, cell phone, contract terms, and market signals; every University will be disbanded and individual professors, working on an adjunct basis, will market their services to groups of students in a 'Latin quarter' market place; university services like the computer facilities and the janitorial service will be outsourced; Amazon.Com will be broken up and each function will be carried out by free agent workers and suppliers working on and off site. All capital needed for the former GM will be raised by small Fannie Mae-style operation that bundle the thousands of contracts and offer them as investments to individual investors."

Form a team with three students and develop three arguments against it and one serious argument for it.