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What happened to volkswagen ?

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by

Paule Abrego

on 26 October 2015

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Transcript of What happened to volkswagen ?

What happened to Volkswagen ?
Paule Abrego
Seminari 103
Javi Almajano
Share price fall
21st september
EPA accusation
shareholders sold
What was the problem within Volkswagen ?
Cheating
Fault of information
( coordination problem )
How do firms work?
Specialization
Comparative advantage
transaction costs
What did Volkswagen do?
Try to avoid transaction costs
Act illegally
( Gary Becker example )
The real conflict within the firm
Coordination problem
Motivation problem
Opportunistic behaviour
Conclusion
Decision taken under uncertainty
Analysis:
Ex-Ante
Ex-Post
Full transcript