Hidden action - PowerPoint PPT Presentation

Information Economics

Information Economics. Consider the following variants on the game of poker: The Certainty Game – 5 cards dealt face up so that all players can see them The Imperfect Information Game – 3 cards dealt face up and 2 face down to each player

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Agency Theory

Agency Theory. BSAD 172 Information Economics. Agency Theory. The problem of motivating one party to act on behalf of another is known as the principal-agent problem Agency theory is a ubiquitous theory to explain transactions between self-interested parties with incongruent goals

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749 views • 6 slides

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