Principal-Agent Problem

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Offline munna99185

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Principal-Agent Problem
« on: April 22, 2018, 01:51:48 PM »
The principal-agent problem occurs when a principal creates an environment in which an agent's incentives don't align with those of the principle. Generally, the onus is on the principal to create incentives for the agent to ensure they act as the principal wants. This includes everything from financial incentives to avoidance of information asymmetry.

Source: Principal-Agent Problem https://www.investopedia.com/terms/p/principal-agent-problem.asp#ixzz5DNu7X9JW