Third issue: moral hazard and uncertainty Dear consultant. We have a cool strategy, but we don’t want to tell people about this, you know, just you. We can reduce the amount of sustainable materials in the products (forks, plates, etc) and replace them with plastic of the same color, but only after we have gathered trust. Someone mentioned something about moral hazard and principal-agent theory dilemmas, but we don’t understand that (we actually don’t care, but you know, the investor is always monitoring us). Should we do this? What do you recommend? We firmly believe that there is no risk to getting caught, because simply in the last 10 months, no one has been caught changing the product features. What is your take on this one, dear consultant?
Third issue: moral hazard and uncertainty Dear consultant.
We have a cool strategy, but we don’t want to tell people about this, you know, just you. We can reduce the amount of sustainable materials in the products (forks, plates, etc) and replace them with plastic of the same color, but only after we have gathered trust. Someone mentioned something about moral hazard and principal-agent theory dilemmas, but we don’t understand that (we actually don’t care, but you know, the investor is always monitoring us). Should we do this? What do you recommend? We firmly believe that there is no risk to getting caught, because simply in the last 10 months, no one has been caught changing the product features. What is your take on this one, dear consultant?
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