How changing incentive structure can mitigate

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Question: Agency theory suggests that interest divergence and information asymmetry between players may incur "moral hazard" problem.

Identify a real-world business example to which "moral hazard" problem is applicable. Discuss why it could be the case.

Based on your identified example, how changing "incentive structure" can mitigate the moral hazard problem.

Reference no: EM133653499

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