Karantininis, Konstantinos
- Institutionen för ekonomi, Sveriges lantbruksuniversitet
Moral hazard is a problem in markets where the qualities or characteristics of products cannot be verified with certainty by consumers. Here we demonstrate that vertical integration is one possible way of dealing with such problems. When the saving of monitoring costs is the driving force behind vertical integration, public monitoring freely available to the market may prevent vertical integration.
credence goods; moral hazard; vertical integration
European Review of Agricultural Economics
2002, volym: 29, nummer: 2, sidor: 271-279
Nationalekonomi
https://res.slu.se/id/publ/100271