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Case 13

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Case 13.1: Improving Safety

1)Who is the principal and who is the agent in this scenario?

2)How is the agent better informed than the principal?

3)How do poorly aligned incentives affect the system and individual administrators?

4)What could the system do to convince nursing home administrators to improve safety?

5)Are financial incentives a part of the action plan? Why or why not?

6)How could nursing home administrators signal to the company that they are improving safety?

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