After a probationary period of six years, during which they teach, research, and serve on committees, university
Question:
a. Explain why a tenure system makes universities susceptible to a moral hazard problem.
b. Explain why the problems of moral hazard caused by tenure are likely to be greater than the problems of adverse selection.
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Related Book For
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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