Examlex
An employee controls his or her own behavior without the need for outside control of that behavior by a manager. This is an example of
Auto-Insurance
A contract between a vehicle owner and an insurance company, where the insurer covers losses related to car accidents or theft.
Monitored Lock
A lock system that is tracked or observed to ensure its integrity, often used in security applications.
Moral Hazard
The situation where one party is more likely to take risks because another party bears the cost of those risks.
Hidden Actions
Situations in a principal-agent relationship where the agent undertakes actions that the principal cannot observe directly.
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