Explain how the agency problems have played a role in different parts of the economy: moralhazard (u

Explain how the agency problems have played a role in different parts of the economy: moralhazard (unobserved effort), and adverse selection (unobserved type). Define clearly who arethe economic agents involved (managers, stockholders, borrowers, government, etc.). Foradditional points, use a simple model to illustrate the situations: remember that the mostimportant conditions are the incentive compatibility constraint and the participation con-straint. Be concise and clear in your explanation and focus on what the theory says. Avoidmaking unfounded statements.

 

Looking for a Similar Assignment? Let us take care of your accounting classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Active Discount Code FREE20