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;
4 Cards in this Set
- Front
- Back
Asymmetric Information
|
Different levels of information available to different people in an economic interaction or exchange
|
|
Moral Hazard
|
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
|
|
Adverse Selection
|
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
|
|
Profit Sharing
|
Programs in which managers and employment receive a share of profits earned by the firm
|