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This discussion is about the excerpt from "Office Space." Respond to the following questions:

a. In the movie Peter says: “It’s not that I am lazy. It is that I just don’t care…The problem is one of motivation.” What kind of problem is depicted in the movie? Is it one of moral hazard or adverse selection? Explain.

b. The consultant mentions a “Stock option equity-sharing program” to provide incentives for Peter to work harder. Explain in detail how such programs are used motivate employees. What kind of incentive problems do they solve?

c. Do you believe that such an incentive program will be successful in providing incentives for employees like Peter to work harder? Explain. Defend your viewpoint.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91400508

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