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Concept Version 7
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Principle-Agent Problem

Principle agent problem

Principle agent problem

The diagram shows the basic idea of the principle agent problem. P is the principle and A is the agent. It clearly illustrates the working relationship between the principle and the agent while highlighting the presence of business partnership as well as self-interest.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Principal agent."
    http://en.wikipedia.org/wiki/File:Principal_agent.png Wikipedia CC BY-SA.

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