The principal–agent problem refers to the conflict in interests and priorities that arises when one person or entity (the "agent") takes actions on behalf...
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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...
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AI alignment (redirect from AI-control problem)
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
Law of agency (redirect from Designated agent)
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...
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or excess "skin" is the principal–agent problem whereby transparency and fiduciary obligations are disregarded by principals who have capital or excess...
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principal. However, a principal–agent problem can occur when there is a conflict of interest between the agent and principal. If the agent has more information...
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example of the principal–agent problem. In the classic principal–agent problem, a principal hires an agent to work on their behalf. The agent then seeks to...
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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...
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calculated using a percentage of revenue, a way for firms to solve the principal–agent problem by attempting to realign employees' interests with those of the...
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Personnel economics (section Principal-Agent Problem)
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...
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this reason, and because common property regimes can avoid the principal-agent problem, the specific local knowledge within common property regimes typically...
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founders or owners may lose benefits and control. The principal–agent problem, or the agency problem is a key weakness of public companies. The separation...
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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...
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reduction of redundant functions. Takeovers may also benefit from a principal-agent problem associated with top executive compensation. For example, it is...
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and management, the principal–agent problem can arise between upper-management (the "agent") and the shareholder(s) (the "principals"). The shareholders...
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gratuities may solve the principal–agent problem (the situation in which an agent, such as a server, is working for a principal, such as a restaurant owner...
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help to address the principal-agent problem where the agents (management) do not adequately respond to the wishes of the principals (investors) of publicly...
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Bayesian persuasion is a special case of a principal–agent problem: the principal is the sender and the agent is the receiver. It can also be seen as a...
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and Johnsen study principal-agent problems. These are incomplete-information games between two players called Principal and Agent, whose payoffs depend...
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government-sponsored agency bonds Agent (disambiguation) Free agency (disambiguation) Agency dilemma or principal–agent problem, in political science, supply...
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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...
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moral hazard, which is a problem typical of information asymmetry. This is specifically the case for the principal–agent problem. Fama, E.F., Jensen, M...
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disconnects problems, solutions, and decision-makers from each other. Principal–agent problem, concerns the difficulties in motivating one party (the "agent"),...
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explained by the principal-agent problem. In companies ownership and management are separate. Shareholders (the principal) elect directors (the agent) to act on...
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interest" between stockholders (principal) and management (agent). This conflict is referred to as the principal–agent problem. It would be naive to think...
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a well documented sequence described in economic theory as the principal–agent problem. Intermediaries seek profit maximization. In the context of investment...
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Gafaelfawr Heimdallr Janus Liminal deity Papa Legba Porter (college) Principal–agent problem Saint Peter Kurt Lewin (2016-04-22). "Frontiers in Group Dynamics:...
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rejects a "materialistic" approach to social, economic, and political problems, while also rejecting class conflict. Just like corporatism, it embraces...
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"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...
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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