May 5, 2015 by Ted 2 Comments The principal-agent model two-state case Video Rating: 5 / 5 David Kennett, professor of economics, examines the notion of moral hazard in connection with the economic crisis. Part of the Two-Minute Lecture Series at Vassar College Video Rating: 5 / 5
edwin huffle says
Why did my teacher not just say that. So good. Thanks.
Hi Prof Arvan, I was wondering in Case iii, why is it the case that that
risk reduction for the agent leads to the expected payment going down for
the principal? Can you explain that a bit more? Great video btw, thanks!