In 2006, an investigative news program sent a TV reporter with a perfectly good car into a garage owned by National Auto Repair (NAR). The reporter came out with a new muffler and transmission and a bill for over $8,000. After the story was aired on national TV, consumers began avoiding NAR, and profits plunged. What is the problem, and how do you fix it?

a)Who made the bad decision? Explain.

b)Did the decision maker have enough information to make a good decision? Explain.

c)Did the decision maker have the incentives to make a good decision? Explain.