Read the Case Study: Dealing with Risk, Asymmetric Information, and Incentives and respond to the following questions:

1. Evaluate a company’s recent (within the last year) actions dealing with risk and uncertainty. Offer advice for improving risk management.

2. Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.

3. Determine the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.

4. Identify a principal-agent problem in your company and evaluate the tools it uses to align incentives and improve profitability

5. Examine the organizational structure of your company and suggests ways it can be changed to improve the overall profitability

Answer rating: 100% (QA)

Introduction Information is important in todays world in which economic agents operate because it affects public policies Although game theory is important in decisions involving uncertainty and strat... View the full answer