• Thumbnail for Principal–agent problem
    The principalagent problem refers to the conflict in interests and priorities that arises when one person or entity (the "agent") takes actions on behalf...
    70 KB (9,291 words) - 18:49, 17 December 2024
  • problem of serving two masters, is an extension of the principal-agent problem that explains problems that can occur when one person or entity acts on behalf...
    10 KB (1,269 words) - 11:03, 9 December 2024
  • open problem. The alignment problem has many parallels with the principal-agent problem in organizational economics. In a principal-agent problem, a principal...
    128 KB (12,512 words) - 00:34, 23 December 2024
  • Thumbnail for Personnel economics
    income. The relationship is represented at a general level in the principal-agent problem whose solution is the firm modeled as a set of contracts for efficiently...
    51 KB (6,190 words) - 08:11, 12 July 2024
  • principal. However, a principalagent problem can occur when there is a conflict of interest between the agent and principal. If the agent has more information...
    45 KB (5,571 words) - 02:19, 20 October 2024
  • relationships that involve a person, called the agent, who is authorized to act on behalf of another (called the principal) to create legal relations with a third...
    25 KB (3,683 words) - 18:07, 12 October 2024
  • Government failure (category Economic problems)
    preference-revelation problems and the illogic of voting and collective behaviour. Supply-side failures largely result from principalagent problem. Government...
    28 KB (3,179 words) - 19:47, 6 December 2024
  • or excess "skin" is the principalagent problem whereby transparency and fiduciary obligations are disregarded by principals who have capital or excess...
    4 KB (453 words) - 20:32, 15 December 2024
  • a "principal" (an organization, person or group of persons), and an "agent". The agent is given powers to make decisions on behalf of the principal. However...
    29 KB (3,886 words) - 10:52, 9 December 2024
  • and Johnsen study principal-agent problems. These are incomplete-information games between two players called Principal and Agent, whose payoffs depend...
    20 KB (2,878 words) - 16:13, 1 August 2024
  • Thumbnail for Public company
    founders or owners may lose benefits and control. The principalagent problem, or the agency problem is a key weakness of public companies. The separation...
    16 KB (2,018 words) - 15:53, 16 December 2024
  • calculated using a percentage of revenue, a way for firms to solve the principalagent problem by attempting to realign employees' interests with those of the...
    11 KB (1,233 words) - 09:35, 15 December 2024
  • government-sponsored agency bonds Agent (disambiguation) Free agency (disambiguation) Agency dilemma or principalagent problem, in political science, supply...
    3 KB (387 words) - 14:43, 28 November 2024
  • at https://ssrn.com/abstract=2003638 Shah, Sunit N. (2014), The Principal-Agent Problem in Finance, CFA Institute, p. 14 Lo, Andrew W. "The statistics...
    17 KB (2,393 words) - 03:03, 19 December 2024
  • and management, the principalagent problem can arise between upper-management (the "agent") and the shareholder(s) (the "principals"). The shareholders...
    98 KB (11,839 words) - 03:52, 19 December 2024
  • Bayesian persuasion is a special case of a principalagent problem: the principal is the sender and the agent is the receiver. It can also be seen as a...
    10 KB (1,279 words) - 12:00, 19 October 2024
  • help to address the principal-agent problem where the management (agents) do not adequately respond to the wishes of the principals (investors) of publicly...
    29 KB (2,715 words) - 12:10, 16 December 2024
  • shirking - at the cost of the principal's interest. The principal's problem is how to control and limit shirking by the agent. RCI scholars may also argue...
    18 KB (2,146 words) - 06:13, 13 November 2024
  • Thumbnail for Gatekeeper
    Gafaelfawr Heimdallr Janus Liminal deity Papa Legba Porter (college) Principalagent problem Saint Peter Kurt Lewin (2016-04-22). "Frontiers in Group Dynamics:...
    7 KB (843 words) - 14:29, 20 August 2024
  • reduction of redundant functions. Takeovers may also benefit from a principal-agent problem associated with top executive compensation. For example, it is...
    22 KB (2,954 words) - 07:45, 15 December 2024
  • A particular kind of a principal-agent problem is when the agent can compute the value of an item that belongs to the principal (e.g. an assessor can compute...
    26 KB (3,376 words) - 05:56, 8 September 2024
  • Thumbnail for Index of economics articles
    elasticity of demand – Price point – Price specie flow mechanism – Principalagent problem – Principles of Economics – Prisoner's dilemma – Product bundling...
    16 KB (1,379 words) - 02:16, 27 November 2024
  • example of the principalagent problem. In the classic principalagent problem, a principal hires an agent to work on their behalf. The agent then seeks to...
    4 KB (549 words) - 08:03, 14 September 2024
  • used to solve models with a principal-agent problem. It suggests that, instead of following the usual assumption that the agent will take an action that...
    6 KB (634 words) - 16:27, 3 April 2024
  • Thumbnail for Gratuity
    gratuities may solve the principalagent problem (the situation in which an agent, such as a server, is working for a principal, such as a restaurant owner...
    92 KB (11,242 words) - 23:29, 19 December 2024
  • autonomy. Moreover, it can result in dark patterns because of the Principalagent problem. The term "choice architecture" was coined by Richard Thaler and...
    28 KB (3,367 words) - 04:41, 9 April 2024
  • moral hazard, which is a problem typical of information asymmetry. This is specifically the case for the principalagent problem. Fama, E.F., Jensen, M...
    3 KB (385 words) - 03:06, 25 April 2022
  • ill-defined optimization or choice problem. For example, buyers (consumers) and sellers (producers) are two common types of agents in partial equilibrium models...
    6 KB (634 words) - 12:25, 6 September 2024
  • often treated as a principalagent problem, with Congress and the Presidency acting as principals and bureaucracy acting as the agent. The government seeks...
    25 KB (2,579 words) - 09:45, 12 July 2024
  • Thumbnail for X-inefficiency
    explained by the principal-agent problem. In companies ownership and management are separate. Shareholders (the principal) elect directors (the agent) to act on...
    15 KB (1,906 words) - 17:01, 20 June 2024