Managers, Markets and Prices
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Title: Managers, Markets and Prices

Essay Details:

Subject: Business
Author: Jacqueline J
Date: April 6, 2015
Level: University
Grade: A
Length: 11 / 3090

Essay text:

Warranty clauses, which are designed by the agent to be a signal of commitment, end up becoming an area for moral hazard. We discuss why government clients become risk averse as a starting basis for understanding Technology One’s preferred contractual arrangements. It is suggested that an incentive-based contract would be more likely to produce an innovative solution for the principal and would more closely align the motivations of the two parties. Alternatively, the use of a performance surety bond may alleviate the risk for the vendor, but only serves to increase the average bid price for the principal...

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