Conflicts of interest is a type of ________ problem that occurs when a person or institution has multiple objectives that are in conflict with each other.

Question

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Conflicts of interest arise when a person or institution has multiple objectives that are at odds with one another. This may cause them to act in a manner that is not in the best interest of one or more of the objectives they are supposed to serve, leading to moral hazard. Adverse selection occurs when one party has more information than the other, while risk sharing refers to spreading the risk among multiple parties. Spinning is a practice where investment banks allocate shares of a new issue IPO to their high-profile clients, instead of selling them on the open market. None of these concepts are relevant to conflicts of interest.

Conflicts of Interest Is a Type of ________ Problem That