The Reoccurring Concept Of The Principal Agent Problem

Hannah Kilby Webb Honors Political Science 28 November 2015 Concepts Paper The reoccurring concept of the principal-agent problem can be defined as employees taking advantage of their employers, or in political terms, elected officials taking advantage of their constituents by hiding information and specialization. Specialization becomes problematic when the agent uses their specific knowledge, in which the principal is lacking, to manipulate the actions of the principal. This issue can be solved by hiring, monitoring, and firing the employees. This is done in politics by electing the official, monitoring their actions, and voting them out of office if the elected fails to do what they were elected to do. Politicians can specialize in certain areas to make themselves seem more desirable to their constituents, claiming to offer something no other politician offers, which in turn makes it easier to be voted into office. An example of the principal-agent problem is elections. Elections produce responsiveness. Responsiveness breeds trust in polit icians. In order to gain that trust, politicians must obey the wishes of their voters to the best of their abilities. The voters use this to their advantage by voting, monitoring, and, if necessary, voting politicians out of office. However, the problem of low voter turnout prevents the solutions to the principal-agent problem. If people do not vote, their wishes can not be expected to be granted. In the United States ofShow MoreRelatedInterfaces Evergreen Services Agreement Essay example2044 Words   |  9 PagesInterface’s Evergreen Services Agreement Northwood University Problem Statement: Dan Hendrix, president and CEO of Interface, Inc. is challenged with deciding the future of Interface’s Evergreen Services Agreement (ESA) business model. This decision will impact Ray Anderson’s vision to create an environmentally stable enterprise. Objectives/Goals: (Financials / Ecological) †¢ Uphold ESA’s business model concept †¢ Maintain ecological balance using the ESA’s seven goal plan toRead MoreAirplane Contract Essay15112 Words   |  61 Pagesproperties or assets may be bound or subject to. (m) â€Å"Corporation† means Supersonic Wings Corp. (n)â€Å"Court† means any Federal, state, local or foreign authority, court, tribunal, agency or other governmental authority. (o) â€Å"Damage† means any problem, defect, loss, liability, obligation, damage, cost or expense (including without limitation, costs of investigation, Court costs, cost of appellate proceedings, legal and attorney’s fees and expenses) or diminution of value, whether or not involvingRead MoreBusiness Law Paper15517 Words   |  63 PagesPrivacy Policy (3 pages) 6 Document Two: Terms of Service (five pages) 18 IV Application of Legal Principles 32 V Lessons Learned, Recommendations and Example Scenario 46 VI Legal Corrective Measures 49 V Conclusion 55 I Executive Summary The concept of online dating has exploded into mainstream culture since the emergence of the Internet. Websites have allowed for the virtual facilitation of basic needs and have taken dating and relationships to a whole new level. These sites promise to makeRead MoreInfluence Of International Culture On The Fashion Industry7108 Words   |  29 Pagesphenomenon, which is receiving copious amounts of criticism in terms of how the products are produced and manufactured in such rapid promptness, it elevates questions in the course of how ethical and sustainable is this form of practice? Therefore the principal objective of this study is to investigate the impacts that culture has implemented upon the fashion industry, in means of how has it evolved, developed and industrialised? Secondly an analysis will be executed to determine if consumer behaviour isRead MoreEthics and Social Responsibility Essay9502 Words   |  39 PagesEthics text Chapter 8 for discussion of Kantian ethics * Statement of Kant’s Ethics Principle – The Categorical Imperative * Application of the Three Tests of the Categorical Imperative to topic (Universal â€Å"Law† Test; Kingdom of Ends Test; Agent-Receiver Test) * Kantian Moral Conclusion C. Additional Ethical Analysis (Alvin) * Selection by student(s) of additional third ethical theory for analysis * See Cavico and Mujtaba Business Ethics text Part I for suggested ethicalRead MoreProject Managment Case Studies214937 Words   |  860 PagesThe Two-Boss Problem 383 The Bathtub Period 385 Ford Motor Co.: Electrical/Electronic Systems Engineering 388 viii 11 PROJECT RISK MANAGEMENT 401 CONTENTS The Space Shuttle Challenger Disaster 403 The Space Shuttle Columbia Disaster 453 Packer Telecom 460 Luxor Technologies 462 Altex Corporation 466 Acme Corporation 470 12 CONFLICT MANAGEMENT 473 Facilities Scheduling at Mayer Manufacturing 475 Scheduling the Safety Lab 478 Telestar International 480 The Problem with PrioritiesRead MoreIct and Ebusiness Retail Industry88499 Words   |  354 PagesSectoral e-Business Watch, which is implemented by empirica GmbH in cooperation with Altran Group, Databank Consulting, DIW Berlin, IDC EMEA, Ipsos, GOPA-Cartermill and Rambà ¸ll Management, based on a service contract with the European Commission (principal contact and coordination: Dr. Hasan Alkas). The SeBW would like to thank Paul Brackel (Consultant), Enrico Colla (Negocia), Cà ©cile Grà ©goire, (EuroCommerce) and Kai Hudetz (ECC Handel) who were members of the Advisory Board in 2007/2008, for their