Balachandran, Kashi R.; Radhakrishnan, Suresh - In: Management Science 51 (2005) 8, pp. 1266-1277
single moral-hazard case, the buyer's quality is observable, whereas in the double moral-hazard case, the buyer's quality is … not observable. The supplier's quality is not observable in both the single and double moral-hazard cases. In each case … and external failures. When the warranty contract is based on information from external failures in the single moral-hazard …