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Discuss the terms of moral hazard and adverse selection. In your discussion you should consider the following: a) When does it arise? b) What are its consequences? and c) what can be done about it?

Moral hazard and adverse selection

 

Discuss the terms of moral hazard and adverse selection. In your discussion you should consider the following: a) When does it arise? b) What are its consequences? and c) what can be done about it?

 

the essay has to consider the, Signaling and Screening, different type of auction, and two important thing in the auction are profit maximization and optimal auction

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