Discussion Post: Coca-Cola Corp.
Describe either an adverse selection or moral hazard problem a company is facing. Describe the qualities that make it either adverse selection or moral hazard. What is the source of the asymmetric information? Who is the less-informed party? Are there any wealth-creating transactions not consummated as a result of the asymmetric information? If so, could you consummate them? What advice/recommendations would you give the company? Incorporate concepts from the readings and lectures.
The discussion board will be set in Canvas to require students to contribute their own response to the prompt prior to reading what classmates have posted. Each student will submit an initial response posting to reflect on all aspects of the prompt. Conclusions must be defended with evidence in appropriate APA format, which means both in-text and end-of-text citations should be included.
Froeb, L. M., McCann, B. T., Shor, M., & Ward, M. R. (2018). Managerial economics: A problemsolving approach (5th ed.). Boston, MA: Cengage Learning.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.