attract unprofitable customers, particularly when salespeople have high productivity and low risk (i.e., risk aversion times … selection problem for the salespeople. By solving the moral hazard and adverse selection problems simultaneously, we show that … firms can prevent the entry of unprofitable customers by "screening". Although, screening generally requires a higher price …

attract unprofitable customers, particularly when salespeople have high productivity and low risk (i.e., risk aversion times … selection problem for the salespeople. By solving the moral hazard and adverse selection problems simultaneously, we show that … firms can prevent the entry of unprofitable customers by “screening”. Although, screening generally requires a higher price …