While many real-world principal-agent problems have both moral hazard and adverse selection, existing tools largely analyze only one at a time. This AER presents a simple method– decoupling–to study both problems at once. https://t.co/UbsThhF4aE
RT @AEAjournals: Forthcoming in the AER: "Disentangling Moral Hazard and Adverse Selection" by Henrique Castro-Pires, Hector Chade, and Jer…
RT @AEAjournals: Forthcoming in the AER: "Disentangling Moral Hazard and Adverse Selection" by Henrique Castro-Pires, Hector Chade, and Jer…
This interesting paper in #AER challenges the traditional view on the link between #moralhazard and #adverseselection