What is adverse selection? What is moral hazard? Give an example of these two problems arising between a firm and its suppliers.
Answer to relevant Questions“Markets tend to favor the party that knows more.” True or false? So if you think you might know less, how does that change your behavior?Are there private property rights within a firm? Who owns what? What is not owned? Can `trade and exchange occur within the firm without the existence of private property rights?Is it possible for a firm to have several different cultures? If so, what does this imply about the relationship between culture and performance?When leading business thinker Gary Hamel analyzes the central problems with the modern hierarchical organization, he sees 5 debilitating deficits. One is that too few voices are heard. His suggested fix: Too few voices: ...An investment has returns of zero with probability one half, $3,000 with probability one third and $6,000 with probability one sixth. What is the expected value of the return?
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