principalagentteori
Principal-Agent Theory is a concept in economics and organization studies that explains the relationships between two or more individuals or organizations, where one party (the principal) delegates tasks or decisions to another party (the agent). This theory is often applied in contexts such as employment, business partnerships, and government relationships.
In the Principal-Agent Theory, the principal is responsible for setting goals and objectives, while the agent
For example, an employee may have a direct incentive to perform work, but may also have personal
Principal-Agent Theory has been widely used in the study of economics, including areas such as moral hazard,
A well-designed system of incentives can mitigate the problems associated with Principal-Agent Theory, and lead to