Term
|
Definition
| Difference in the access to information; one side of the market knows more than the other |
|
|
Term
|
Definition
| Something only the seller knows about a good |
|
|
Term
|
Definition
| An action that the employee knows about his/her productivity |
|
|
Term
|
Definition
| Tendency to underperform if not monitored |
|
|
Term
|
Definition
| a person who is performing an act for another person |
|
|
Term
|
Definition
| a person for whom another person is performing some act |
|
|
Term
| To avoid moral hazards... |
|
Definition
- better monitor people
- higher wages
- delayed payment |
|
|
Term
|
Definition
the tendency for the mix of unobserved attributes to become undesirable form the standpoint of an uniformed party.
Unwanted goods because of low quality. |
|
|
Term
|
Definition
| an action taken by an informed party to reveal private information to an uninformed party |
|
|
Term
|
Definition
| The action taken by an uninformed party to induce an informed party to reveal information |
|
|
Term
| When someone knows more than others... |
|
Definition
|
|
Term
| Reasons why public policy doesn't really work |
|
Definition
- private markets can help themselves sometimes
- government doesn't know anymore than the consumer
- government is imperfect |
|
|
Term
|
Definition
| the expected value of the claims is equal to the premium |
|
|
Term
|
Definition
| Someone who prefers the less risky alternative |
|
|
Term
|
Definition
| A person who doesn't really care about risk. Cares more/only about expected wealth. |
|
|
Term
|
Definition
| Spreading risks across many different investments. |
|
|
