Gustaf
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« on: August 28, 2011, 05:12:59 AM » |
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I didn't have time to read all of this, but there has obviously been moral hazard within banks and financial institutions. There has been a number of problems in recent decades regarding the fact that the firm is not a single agent, but made up of several agents. This is fairly standard micro theory and there are plenty of instances where a firm will not end up acting in a way that maximizes its profit.
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