Question

How asymmetric information and moral hazard affect the Good Friday Agreement (Ireland Border Treaty) and the UK- Europe negotiations over Brexit?

Answer 1

Assymetric information caused in both the cases as both parties lacked information of negative implications of the deal and were reluctant to get deal passed.

Moreover due to moral haazard there was complete lack of incentive to guard off against risk as UK wanted to get Brexit done as it would help them anyway and was insured and similarly Ireland wanted peace agreement signed making them better off.

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answered by: anonymous