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Companies often update their privacy policies, but it is unclear whether these updates strengthen or weaken user privacy. Using a principal-agent theoretical lens, we analyze over 200 changes to privacy policies of five prominent Internet companies over a period of fifteen years. We find that over time, privacy policy updates are more likely to weaken, rather than strengthen, user privacy on the Internet...
Information asymmetry will lead to adverse selecting and moral risk which causes the invalidation of C2C e-commerce market finally. This article introduces e-commerce intermediaries into the gambling analysis, transform the prestige mechanism to influence factor of the parameter, to reveal the four mechanisms taken by e-commerce intermediaries in buyers and sellers gambling and explain how to alleviate...
In the research of revenue in the outsourcing process, the traditional model rarely takes the invisible benefits into account. This leads to an asymmetric information model in the revenue game between outsourcers and contractors. On this basis,with the study of outsourcers who are providing the same excitation conditions, we study the difference of effort in the contractors within the invisible and...
To solve the moral hazard problems arising from the information asymmetry in construction market, analyze the role that the corporate reputation of construction firms can play, and prove it using “Reputation effects model in agent market” in information economics. Then in consideration of the model and the actual situation of the construction market in China, make a further analysis on the key issues...
With the rapid development of electronic information technology and internet, e-commerce has been a new means of market transactions, which take a huge advantage in market for its convenience and openness in information acquisition, transmission, and communication and transaction costs. However, the moral hazard and adverse selection resulting from information asymmetry induce imbalance between the...
Information asymmetry widely exists in the supply chain. The supply chain cannot be coordinated easily because of it. But coordination is important to maximize the profit of supply chain. In this paper, the situation that supplier has adverse selection and the retailer has moral hazard for information asymmetry is considered. A virtual third party is introduced to develop an incentive model from the...
The ubiquity of information asymmetry in reality leads to adverse selection as well as moral hazard and the increase of enterprise's cost and decrease of profit. Thus it has a negative impact on the survival and development of enterprises. This paper regards the enterprise culture as the common sense of the enterprise and the reduction of asymmetric information. It can decrease the transaction costs...
As a way of risk management, insurance plays an important role in people's daily life. Health insurance becomes one of the most concerned types of insurance because it related to health, which is paid much attention by people. Because of information asymmetry and the participation of physician, health insurance market has developed a unique principal-agent relationship of three participants, which...
Due to the information asymmetry, investors are confronted with the "moral risk" of entrepreneurs in the venture capital investment. By using game theory, this paper gives an in-depth analysis to the "moral risk" of entrepreneurs and draws some valuable research conclusions and suggestions, including: behavioral choice of entrepreneurs is a function of the system; the enterprises...
Based on information asymmetry, this paper analyzes the moral hazard of developing tourism resources in China by the principal-agent theory. It links tourism revenues to the developing compensation. To solve the moral hazard, this paper designs an incentive and restrictive mechanism. Based on the model, the problems in the development are analyzed, and proposals of improving the mechanism are proposed.
As grocery shopping shifted from traditional to online environment, consumer logistics that shoppers once completed by themselves has been undertaken by E-Grocers(Online Grocers). Consequently the principal-agent relationship is built between online shoppers and E-Grocers due to the information asymmetry. The Principal-Agent Problem in this context was identified and explained by using the principal-agent...
In the risk investment system, whether the double principal-agent relationship which is formed by different interest subjects can smoothly operate is the key to determine the success of risk investment, yet the issue of information asymmetry in the field is more serious than other industry, so that double principal-agent relationship formed in it exists huge risks. A series of binding agreements and...
With the increasingly furious market competition, human resource has been the core resource for enterprises to gain sustained competitive strength. As a new management method, human resource management outsourcing gradually shows its necessity and essentiality. However, in the business of human resource management outsourcing, it is a combination of outsourcing enterprises and outsourcing vendors...
Attributing the frequent occurrences of major safety accidents in Chinese social and engineering system to related the moral deficiency of concerned persons responsible and to expect problem solving by replacing all levels of leaders is an attempt to reduce non-systematic risks to solve the problem of systematic risks, which may plunge the safety supervision system into a mire of ldquosuperficial...
Credit risk is the main risk faced by the banking industry, so a lot of work has been done to reduce the losses caused by credit risk. The existing of information asymmetry is the root cause of commercial bank credit risk and is certainly a major cause. Credit risk means the possibility to make banks suffer a lot of losses because of the uncertainties in credit activities. The paper firstly analyzed...
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