Three Difficulties That Limit the Usefulness of Ownership in Resolving

question 9

Multiple Choice

Three difficulties that limit the usefulness of ownership in resolving incentive problems are:

• A) wealth constraint, free riding and bundling.
• B) risk aversion, free-riding and conflict of interests.
• C) wealth constraints, risk aversion and bundling.
• D) wealth constraints, risk aversion and free-riding.

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