If the Value of a Cable TV Franchise Is Uncertain

question 121

Multiple Choice

If the value of a cable TV franchise is uncertain, too much may be bid for the franchise.This is an example of

• A)moral hazard
• B)an authority relation
• C)the winner's curse
• D)the principal-agent problem
• E)adverse selection

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Definitions:

Frustration-Aggression Principle

A psychological theory suggesting that frustration often leads to aggressive behavior.

Just-World Phenomenon

The cognitive bias that a person's actions are inherently inclined to bring morally fair and fitting consequences to that person, essentially believing in a just world.

Ocean Shoreline

The boundary line where the ocean meets the land.

Prejudice

Preconceived opinion that is not based on reason or actual experience, often directed toward a person or group.