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If businesses have no confidence in the system in place they won't invest, and without investment there are less incentives for sustaining the rule of law".
Drawbacks of this approach (e.g., actuarial uncertainty for the purchaser) have to be traded-off against its advantages (e.g., its simplicity and certainty for providers, as well as less incentives for risk selection compared to explicit targets).
Similar(57)
It creates less incentive for innovation.
Since brokers work on commission, there is less incentive for them to handle modest office spaces.
Now this is far less incentive for lenders to do this".
There is less incentive for a member-owned business to price-gouge or mis-sell.
"Without that money there would be significantly less incentive for this particular scam," Ms. Tighe noted.
There would be no need for cost shifting or the ordering of unnecessary tests, and less incentive for fraud.
(When depositors and investors know there's a safety net in place, there's less incentive for a bank run).
But there is less incentive for manufacturers to make fundamental changes in how buildings and roads are made.
So if those funds underperform, there is less incentive for the firm to suggest that clients withdraw their money.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com