• 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 (9,357 words) - 12:26, 9 May 2025
  • 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...
    132 KB (12,973 words) - 05:29, 13 May 2025
  • 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 (3,702 words) - 01:25, 7 February 2025
  • 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) - 16:40, 31 December 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...
    46 KB (5,683 words) - 07:20, 19 April 2025
  • 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
  • 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 (2,400 words) - 07:46, 30 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
  • 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
  • Thumbnail for Free-rider problem
    this reason, and because common property regimes can avoid the principal-agent problem, the specific local knowledge within common property regimes typically...
    39 KB (4,823 words) - 05:03, 19 April 2025
  • 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) - 16:11, 29 April 2025
  • 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) - 17:00, 11 March 2025
  • reduction of redundant functions. Takeovers may also benefit from a principal-agent problem associated with top executive compensation. For example, it is...
    23 KB (3,057 words) - 04:52, 16 April 2025
  • and management, the principalagent problem can arise between upper-management (the "agent") and the shareholder(s) (the "principals"). The shareholders...
    98 KB (11,811 words) - 06:24, 4 May 2025
  • 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...
    93 KB (11,363 words) - 17:19, 20 April 2025
  • help to address the principal-agent problem where the agents (management) do not adequately respond to the wishes of the principals (investors) of publicly...
    29 KB (2,744 words) - 22:07, 10 May 2025
  • 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) - 01:53, 21 January 2025
  • and Johnsen study principal-agent problems. These are incomplete-information games between two players called Principal and Agent, whose payoffs depend...
    21 KB (2,987 words) - 18:21, 12 May 2025
  • government-sponsored agency bonds Agent (disambiguation) Free agency (disambiguation) Agency dilemma or principalagent problem, in political science, supply...
    3 KB (379 words) - 19:53, 10 February 2025
  • 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) - 09:55, 27 December 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
  • Thumbnail for Organization
    disconnects problems, solutions, and decision-makers from each other. Principalagent problem, concerns the difficulties in motivating one party (the "agent"),...
    25 KB (2,969 words) - 08:34, 25 March 2025
  • 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 (1,875 words) - 21:27, 25 January 2025
  • Thumbnail for Stock
    interest" between stockholders (principal) and management (agent). This conflict is referred to as the principalagent problem. It would be naive to think...
    41 KB (5,159 words) - 01:13, 11 May 2025
  • a well documented sequence described in economic theory as the principalagent problem. Intermediaries seek profit maximization. In the context of investment...
    14 KB (1,527 words) - 17:09, 30 October 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
  • Thumbnail for Corporatism
    rejects a "materialistic" approach to social, economic, and political problems, while also rejecting class conflict. Just like corporatism, it embraces...
    43 KB (4,812 words) - 17:57, 6 May 2025
  • Thumbnail for Incentive
    "principal-agent problem," where the incentives of the principal (e.g., the government or a company) do not align with the incentives of the agent (e...
    55 KB (6,823 words) - 02:30, 7 May 2025
  • Thumbnail for Proxy war
    relationship between sponsors and proxies can be characterized by principal-agent problems whereby the sponsor may be unable to control the actions of the...
    21 KB (2,384 words) - 14:07, 11 March 2025