Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
3 Cards in this Set
- Front
- Back
|
Moral Hazard |
The agent has opportunity to take actions that are hidden from the principal |
|
|
Adverse selection |
The agent has attributes that are hidden from the principal before the are chosen |
|
|
Ex ante mechanism |
Helps principals to learn about agents BEFORE they are chosen |
