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Markets break down when bad information exists or when people fail to trust other parties in business arrangements. Chapter 12 focuses on the problems related

Markets break down when bad information exists or when people fail to trust other parties in business arrangements. Chapter 12 focuses on the problems related to information failure in markets. In the industry in which you work (or in which you wish to work) how could you as a manager reduce the risks related to adverse selection and/or moral hazard? How might a firm develop different tactics to handle these problems?

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