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What is the principal-agent problem?

Updated: 12/12/2022
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Machage

Lvl 1
15y ago

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In politics, the principle is the citizen, who poses the right to make certain decisions. The agent is members of Congress. The problem is when the principle and agent have different goals, causing conflict to arise. One might feel their Congressman is "out of touch" or not getting things done.

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Wiki User

15y ago
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