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Will fields with both oil and gas have greater difficulties in unitization than fields with oil or gas alone? Explain.
But because liability insurance also encourages drivers to take additional risks, why wouldn't the world be a better place without it?
Try to define what (if anything) is meant by everyone being an owner, and how everyone's property rights might be defined and enforced.
Identify some of these investments. Then explain how each of the parties might act opportunistically to gain from the other's specific investments.
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees?
Why the difference? If they are owned by different parties, what sorts of provisions might you expect to see in the contract between them?
Why would both employers and employees often choose to operate under an incomplete contract rather than a more complete one?
We The People is a national chain that offers paralegal services such as filing forms. What might this have to do with its methods of charging customers?
What if Jones's breach gives him benefits of $170, while Smith again gets $40? In this case, why would an economist recommend that Jones breach the agreement?
Do you expect to see plaintiffs' attorneys operating under contingency arrangements in these countries? Why or why not?
Do you have any evidence that agents like your instructor sometimes act opportunistically, in ways the principals do not want to them to?
What would happen to premiums if the probabilities of houses burning were positively correlated? Can you think of a situation where they might be negatively cor
Why is the given plan more likely to be offered by an electric utility company or a high-tech internet company? Why?
Enumerate some elements of moral hazard and adverse selection that might pose obstacles to Lloyds successfully marketing such a policy.
Use the economics of asymmetric information to explain why practices like these might exist.
Currently, the law prevents courts or police from releasing information about the criminal records of people. Identify the gainers and losers from each policy.
When I trade futures and options am I purchasing a form of insurance. How would you distinguish between insuring yourself and speculating?
Do you expect that the winner's curse will be a bigger problem for a painter bidding to do the interior or the exterior of a house?
Why can society put an end to the lemons problems by requiring that all sellers offer warranties?
Married people occasionally report that they are less happy with their spouses than they expected. What might this have to do with the winner's curse?
Calculate the elasticity of demand facing Producer No. 27 for its own output. What happens to Producer No. 27's revenue as a result of cutting output?
Explain why a perfectly competitive firm generally does not maximize its profit by producing the output at which average cost is minimized.
Doesn't it make sense to produce fewer units because the difference between price and marginal cost on the last unit it produces will then be bigger?
What happens to industry equilibrium if a public agency competes with existing producers of X and gives away 100,000 units per year to randomly selected.
Which is itself also supplied by a perfectly competitive industry. If the government imposes a price ceiling on Y, what happens to the price of X?