Examples
- George Akerlof described adverse selection in the market for used cars.
- In certain models, such as Michael Spence's job-market model, the agent can signal his type to the principal which may help to resolve the problem.
Read more about this topic: Contract Theory
Famous quotes containing the word examples:
“It is hardly to be believed how spiritual reflections when mixed with a little physics can hold peoples attention and give them a livelier idea of God than do the often ill-applied examples of his wrath.”
—G.C. (Georg Christoph)
“There are many examples of women that have excelled in learning, and even in war, but this is no reason we should bring em all up to Latin and Greek or else military discipline, instead of needle-work and housewifry.”
—Bernard Mandeville (16701733)
“No rules exist, and examples are simply life-savers answering the appeals of rules making vain attempts to exist.”
—André Breton (18961966)
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