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Does the decision-maker have enough information to make

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Reference no: EM133575716

Questions: The student is to find a situation at their current work (or elsewhere) that is a principle agent problem. The student will then use the tools of problem solving with respect to principle agent problems to analyze and solve the problem (if one exists). As outlined in the book, a framework for diagnosing and solving problems of this type takes three components.

1. Who is making the (bad) decision?

2. Does the decision-maker have enough information to make a good decision?

3. Does the decision-maker have the incentive to do so?

Reference no: EM133575716

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