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Explanation analysis of the risks

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Describe an example you have experienced with the principal-agent problem (for example, you have a desire for your children to listen in school and do well, while for them, goofing off at school might be much more fun), and explain how incentives can be used to overcome the principal-agent problem (such as paying your children for good grades). Include in your explanation analysis of the risks in using incentives.

Reference no: EM133083415

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