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The principal-agent problem

The principal-agent problem

A principal-agent problem occurs when an agent acts in their own interest rather than in the interest of the principal they represent. In a public limited company, shareholders are the principals and managers are their agents.

7.7.5 principal–agent problem arising from differing objectives of shareholders/owners and managers Lesson

  1. Intl A Level
  2. /Economics
  3. /7.7.5 principal–agent problem arising from differing objectives of shareholders/owners and managers

Step-by-step lessons on CIE Intl A Level Economics 7.7.5 principal–agent problem arising from differing objectives of shareholders/owners and managers. Each one builds up to exam-style questions.

Lessons