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4 Cards in this Set
- Front
- Back
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Asymmetric Information
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Different levels of information available to different people in an economic interaction or exchange
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Moral Hazard
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Ain insurance markets, a situation in which a person buys insurance against some risk and subsequently takes actions that increase the rink; analogous situations arise when there is asymmetric information in other markets
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Adverse Selection
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In insurance markets, a situation in which the people who choose to buy insurance will be the riskiest group in the population; analogous situations apply in other markets
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Profit Sharing
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Programs in which managers and employment receive a share of profits earned by the firm
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