Using Both Sociological and Economic Incentives to Reduce Moral Hazard

Using Both Sociological and Economic Incentives to Reduce Moral Hazard

Economists tend to focus on monetary incentives. In the model developed here, both sociological and economic incentives are used to diminish the apparent moral hazard problem existing in commodity grading. Training that promotes graders' response to sociological incentives is shown to increase...

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Bibliographic Details
Main Authors: Francisca G.-C. Richter, Edgar F. Pebe Diaz, B. Wade Brorsen, Kevin Currier
Format: Article
Language:English
Published: Western Agricultural Economics Association 2003-08-01
Series:Journal of Agricultural and Resource Economics
Subjects:
grading
incentives
moral hazard
norms
social sanctions
Online Access:https://ageconsearch.umn.edu/record/31096

Internet

https://ageconsearch.umn.edu/record/31096

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