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observed contracts. Empirical tests reject the hypothesis of pure risk sharing and a wide range of support for the presence of … moral hazard problem in the choice of contracts. …
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The current literature on sharing contracts emphasizes the importance of asymmetric information and typically assumes … averse. The analysis suggests that two-sided risk aversion is important in determining contracts. …
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Crowdfunding challenges the traditional separation between finance and marketing. It creates economic value by reducing demand uncertainty, which enables a better screening of positive NPV projects. Entrepreneurial moral hazard threatens this effect. Using mechanism design, mechanisms are...
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