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Unobservable Actions
Actions taken by individuals or entities that cannot be seen or monitored by others, often discussed in the context of economics or game theory.
Moral Hazard
A situation where one party is more likely to take risks because the negative consequences of the risk will be borne by another party.
Unobservable Actions
Actions taken by parties in a contract or agreement that cannot be directly observed or monitored by others.
Adverse Selection
A situation in which sellers have information that buyers do not, or vice versa, leading to an inefficient market outcome.
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