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borrower lender relationships in high technology ventures
Essay specific features
Written by:
Eileen N
Date added:
May 14, 2015
Level:
Grade:
B
No of pages / words:
10 / 2572
Was viewed:
9358 times
Rating of current essay:
Essay content:
If hiding the information from the other party will benefit them, they will do so. This creates the problem of moral hazard (Reid & Smith, 2003). Moral hazard problems may occur whenever information asymmetries exist; in other words, when one side is more informed than the other. Thus, one party has an incentive to shift risk onto an uninformed other party (Shane & Cable, 1997)...
displayed 300 characters
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If hiding the information from the other party will benefit them, they will do so. This creates the problem of moral hazard (Reid & Smith, 2003). Moral hazard problems may occur whenever information asymmetries exist; in other words, when one side is more informed than the other. Thus, one party has an incentive to shift risk onto an uninformed other party (Shane & Cable, 1997)...
displayed 300 characters
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