What issue does the "principal-agent" model address? a. public goods-the problem ofemployers abuse b. asymmetric information-the problem of adverse selection c. externalities-the problem of network effects Odpublic goods-the problem of employees abuse e. asymmetric information-the problem of incentive compatibility
What issue does the "principal-agent" model address? a. public goods-the problem ofemployers abuse b. asymmetric information-the problem of adverse selection c. externalities-the problem of network effects Odpublic goods-the problem of employees abuse e. asymmetric information-the problem of incentive compatibility
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter1: Introduction: What This Book Is About
Section: Chapter Questions
Problem 3MC
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What issue does the "principal-agent" model address?
a. public goods-the problem ofemployers abuse
b. asymmetric information-the problem of adverse selection
c. externalities-the problem of network effects Odpublic goods-the problem of employees abuse
e. asymmetric information-the problem of incentive compatibility
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