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Adverse Selection, Moral Hazard and Entry

Author

Listed:
  • Creane, A
  • Hall, M

Abstract

Firms regularly introduce new, non-patentable products and innovations. When the possibility of a new product or an innovation arises to a potential seller, the seller faces a risk in successfully creating and producing a new product that consumers value above its costs. This framework enables a new analysis of signaling and adverse selection in models of fixed, exogenous quality or types.

Suggested Citation

  • Creane, A & Hall, M, 1994. "Adverse Selection, Moral Hazard and Entry," Papers 9404, Michigan State - Econometrics and Economic Theory.
  • Handle: RePEc:fth:mistet:9404
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    More about this item

    Keywords

    RISK ; DECISION MAKING ; UNCERTAINTY;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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