Home

About

Advanced Search

Browse by Discipline

Scientific Societies

E-print Alerts

Add E-prints

E-print Network
FAQHELPSITE MAPCONTACT US


  Advanced Search  

 
13. Moral Hazard Moral Hazard: agent has
 

Summary: 9/24/2010
1
13. Moral Hazard
Moral Hazard: agent has
incentives to do things
that are bad for the
principal.
Cash in the hat. Put in 1 or
Match Take
3. Player 2 can match. If
opponent matches, player
1 doubles investment.
In original formulation,
can't put in 3 as will have
3 utility.
1 (1,1.5) (1,1)
3 (3,2) (3,3)
Sequential game
Borrower/lender moral hazard if borrower had
incentive to do things which are not in the

  

Source: Allan, Vicki H. - Department of Computer Science, Utah State University

 

Collections: Computer Technologies and Information Sciences