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Tuesday, October 31, 2006


One interesting aspect of an MBA curriculum is giving complicated names and jargons to the common stuff and making these concepts look important. And as these seemingly simple concepts get new names they tend to develop very precise connotation that makes the phrase or the jargon very powerful. Recently, I have been regulary coming across a few such jargons, which I feel should find a mention in this post.
(1) Agency problem
(2) Adverse selection
(3) Moral hazard
(4) Assortative matching
(5) Information asymmetric
(6) Limited liability
(7) Social capital
These are some of the jargons, which I have started to admire and appreciate as they possess great power in explaining a varied range of complex issues. These phrases can be traced in numerous MBA courses, microfinance in particular.

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