Agency Problem

1 revision
#11 week ago
+6
Migrated from pages table
+The **Agency Problem** describes a fundamental conflict of interest where one party, the agent, acts on behalf of another, the principal. It emerges when an agent's self-interest diverges from the principal's goals, leading to decisions that may not fully optimize for the principal. Addressing this often involves robust [Corporate Governance](/wiki/corporate_governance) and careful [Contract Design](/wiki/contract_design) to align motivations.
+## See also
+- [Moral Hazard](/wiki/moral_hazard)
+- [Asymmetric Information](/wiki/asymmetric_information)
+- [Fiduciary Duty](/wiki/fiduciary_duty)
... 1 more lines