Posts tagged principle agent problem example
The Principal-Agent Problem: Solving It With Incentives

It's hard to get other people to care about what you do. And it's almost impossible if they don't have the same "skin in the game" - if they aren't rewarded or punished directly based on the outcome of their decisions. It turns out this is a very old problem. It's called the principal-agent problem. And if you're an owner or an employee, you have to understand it.

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