Mapletree Commercial Trust owns Singapore's largest mall, VivoCity.The Trust has contracted with Mapletree Investments to manage the mall.The manager is responsible for the carpark, as well as cleaning, security, and other common services.The mall's retail tenants pay a three-part rental: in 2010, 86% was fixed, and 13% was based on the retailer's sales revenue, while the remainder comprised service charges and contributions to advertising and promotion.Source:Mapletree Commercial Trust, Prospectus, April 18, 2011.)

(a) How is the manager of VivoCity subject to moral hazard relative to its tenants?

(b) How does the variable payment align the interests of landlord and tenant?

(c) Ideally,should the variable payment be based on the tenant's gross revenue or net revenue (gross revenue less cost of goods sold)?

(d) Mapletree Investments is a developer of commercial and industrial real estate.It sells completed projects to Mapletree Commercial Trust.Discuss the asymmetry of information between the two entities