Questions:
1. The article 15 Lessons Everyone Learns at Business School provides examples of business case studies. Read a few of the case studies in the article to get a feel for the style of a business case study.
2. Now you will write your own case study about agency problems and managerial incentives by following these steps:
Briefly define moral hazard and the principle agent problem using your own words.
How might executive compensation schemes and managerial incentives be related to the principle agent problem?
Use the Shapiro Library resources or other internet resources to find an example of your choosing about a company that altered its managerial incentives or executive compensation scheme.
List the name and type of business and the source and date of the article.
Briefly describe the reason for and nature of the change. How was economic reasoning involved in the decision?
For additional details, please refer to the Course Project Overview and Rubric document in the Assignment Guidelines and Rubrics section of the course.