1 Learning Outcomes 1. Explain the notion of adverse selection for buyers. 2. Discuss the possible responses to adverse selection for buyers. 3. Explain the notion of moral hazard. 4. Define a public good and the free rider problem. 5. Use the marginal principle to describe the optimum level of pollution. 11.2 Action Required: Reading […]
Strategic Economic Plan – Moral Hazard & Asymmetric Information 1.Develop a plan for clearly communicating information about Apple products & service 2.Explain how you will limit moral hazard and asymmetric information for the consumers of Apple products & services. 3.Explain why limiting moral hazard and asymmetric information is an economically good idea.
To what extent does the investors (VCs) reputation influence Pre-IPO performance? – Pre-IPO performance due to VCs reputation – Influence on pre-IPO performance – Effects of VCs reputation on firm (asymmetric information, underpricing, ownership and control) – Theoretical comparision between the UK and US
Identify an example of a management scenario from current events involving adverse selection or moral hazard. Discuss some methods with your classmates for correcting the potential problems of the asymmetric information.
A case analysis of Uber Uber is a ride-sharing service started in 2009. If you are not familiar with Uber, you can learn more about the services it provides at Uber.com. Construct an eight-page analysis of Uber using the following criteria. Analyze the market before Uber’s entry. Describe the inefficiency Uber exploited. Explain Uber’s surge […]
