Adverse Selection and Moral Hazard in Contract Law

Download or read book Adverse Selection and Moral Hazard in Contract Law written by Nicole Petrick and published by GRIN Verlag. This book was released on 2009 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay aus dem Jahr 2005 im Fachbereich BWL - Recht, Note: 1,7, Higher School of Economics Moscow, Russia, Sprache: Deutsch, Abstract: Legal and economical interpretations of contract, contract law and contract theory, asymmetric information, adverse selection and moral hazard. Paper explains negative effects of adverse selection and moral hazard for the case of transaction costs and incomplete contracts and describes incentives to avoid adverse selection and moral hazard, such as signaling and deductibles as well as indemnity contracts and valued contracts.