Managerial Economics and Globalization
Case Study: Dealing with Risk and Uncertainty
Overview
Select an airline company of your choice, one that has been dealing with risk and uncertainty within the last six months, and write a 4–6 page paper in which you identify risk and identify comprehensive ways to should minimize its negative impacts and address risk while improving profitability.
Instructions
Evaluate the airline company’s recent actions (within the last six months) dealing with risk and uncertainty.
Offer advice for improving risk management.
Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.
Determine the ways the airline company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.
Identify a principal-agent problem in the airline company and evaluate the tools it uses to align incentives and improve profitability.
Examine the organizational structure of the airline company and suggest ways it can be changed to improve the overall profitability.
Use at least five quality academic resources in this assignment. One reference must be about the risk and uncertainty the company has faced in the last six months.
Note: Wikipedia, Investopedia, Course Hero, and similar websites are not acceptable references.
