How can insurance providers use incentives to reduce moral


1. How can insurance companies mitigate the problems of adverse selection?

2. What is moral hazard? Describe the example of moral hazard in the insurance market.

3. How can insurance providers use incentives to reduce moral hazard in the insurance market?

4. What market characteristics can create problems in a principal?-?agent relationship?

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Econometrics: How can insurance providers use incentives to reduce moral
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