Who is making the decision

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Reference no: EM133574370

Section 1: Who is making the Decision? In this section the student should outline who is making the decision in this situation. The purpose of this section is to make clear what the source of the problem. As outlined in the text, if this is a moral hazard or adverse selection problem this section should make that clear to the lay-reader.

Section 2: Does the Decision-Maker have enough information to make a good decision? In this section the student must discuss what information the decision-maker has to make the decision. Specifically, you must address what would be the proper information for the decision maker to have to make a good decision and then also discuss the information that the decision-maker is given in the context of the problem.

Reference no: EM133574370

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