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Many professional sports athletes have incentive clauses

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Reference no: EM13151057

Many professional sports athletes have incentive clauses in their contracts. These indicate tha: a) the team owner has asymmetric information b) the athlete might engage in moral hazard, which the team owner wishes to avoid. c)the athlete might engage in adverse selection, which the team owner wishes to avoid. d) the athlete has stronger negotiators.

Reference no: EM13151057

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