1.Explain and discus both the differences and similarities between: (i) moral hazard; (ii) adverse selection; and, (3) the principal-agent problem. Please be sure to use theory, examples and references to articles throughout the course when answering the question.

2.Effective pricing strategies have been the focus of much of course. Yet, while some make theoretical sense, consumers feel disadvantaged --- or worse, being "taken for a ride --- at times (such as in the case of Coca-Cola adjustable price vending machines and Uber's policy of "surge pricing"). Explain the concept of a reference price and how it relates to the psychology of the consumer. Further, explain and discuss how firms can more easily integrate efficient economic pricing practices without facing a backlash from consumers. Again, be to use theory, examples and references to articles throughout the course when answering the question.