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How is terrorism distinct from other forms of crime or acts of war?
Adverse Selection
A situation in financial markets where buyers and sellers have different information, leading to transactions that favor the party with more information, often seen in insurance markets.
Moral Hazard
The risk that one party to a contract can change their behavior to the detriment of another after the contract has been concluded, particularly where one party bears the cost of those actions.
Uncertainty
A state of having limited knowledge where it is impossible to exactly describe existing states or future outcomes.
Incentive Compensation
A form of payment designed to motivate and reward employees for exceeding specific performance goals.
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