Explain the key differences and similarities between the predictions of classic agency (incentive or moral‐hazard) model regarding uncertainty and use of incentive contracts and the predictions of the project‐selection model. Thinking about the hierarchic

Explain the key differences and similarities between the predictions of classic agency (incentive or moral‐hazard) model regarding uncertainty and use of incentive contracts and the predictions of the project‐selection model. Thinking about the hierarchical layers in a hierarchy, which model more likely applies to those at the top and those at the bottom? Explain your answer.

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