Explain incentive clauses in contracts


Many professional sports athletes have incentive clauses in their contracts. These indicate tha: a) the team owner has asymmetric information b) the athlete might engage in moral hazard, which the team owner wishes to avoid. c)the athlete might engage in adverse selection, which the team owner wishes to avoid. d) the athlete has stronger negotiators.

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Microeconomics: Explain incentive clauses in contracts
Reference No:- TGS038273

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