Question: Multiple Choice Information asymmetry is not an issue in behavior - based contracts. Outcome - oriented contracts do not transfer risk to the agent. Behavior
Multiple Choice
Information asymmetry is not an issue in behaviorbased contracts.
Outcomeoriented contracts do not transfer risk to the agent.
Behaviorbased contracts increase the agent's risks.
Outcomeoriented contracts require a compensating wage differential.
Merit pay is an example of an outcomebased contract.
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