Bicycle insurance and information asymmetry you sell

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19-3 Bicycle Insurance and Information AsymmetryYou sell bicycle theft insurance. If bicycle owners do not know whether they are high- or low-risk consumers, is there an adverse selection problem?
19-4 Job AuctionWhen China reformed state-owned enterprises, it tried a new approach to choosing managers: it put managerial jobs up for auction. The bids for the jobs consisted of promises of future profit streams that
Managerial Economics – ECP 3703Eastern Florida State College – Palm Bay CampusIndividual Problems Answer Keythe managers would generate and then deliver to the state. In cases where the incumbent manager was the winning bidder, firm productivity tended to increase dramatically. When outside bidders won, there was little productivity improvement. If incumbent managers were not generally more qualified, how can you explain this result?
selection problem, and why soft selling is a successful signal.

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