Problems of moral hazard-adverse selection arise

Reference no: EM13685997

What problems of moral hazard and/or adverse selection arise in your dealings with each of the following? In each case, outline some appropriate incentive schemes and/or signalling and screening strategies to cope with these problems. No mathematical analysis is expected, however you should state clearly the economic reasoning of why and how your suggested methods work.

1. You consult a realtor when you are selling your house.

2. Your financial adviser tells you what stocks to buy or sell.

3. You visit your doctor, whether for routine check-ups or treatments.

Reference no: EM13685997

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