Journal Economics for Managers Homework

Journal Economics for Managers

Identify an example of a management scenario from your own experiences or current events involving adverse selection or moral hazard. Describe some methods to correct the potential problems of the asymmetric information.Your journal entry must be at least 200 words in length. No references or citations are necessary

Part I: Describe an example you have experience with of the principal-agent problem (for example, you have a desire for your children to listen in school and do well, while for them, goofing off at school might be much more fun), and explain how incentives can be used to overcome the principal-agent problem (such as paying your children for good grades). Include in your explanation an analysis of the risks in using incentives.

Part II: How will you be able to apply what you learned in this course to your current or future work?Your journal entry must be at least 200 words in length. No references or citations are necessary.

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