Principal-Agent Problem

Agency Cost
An analysis of the agency costs in economic theory, their implications, and associated frameworks.
Agency Problem
An examination of the agency problem, defined as the difficulties encountered when a principal delegates a task to an agent, highlighting issues of asymmetric information and incomplete contracts.
Contract Theory
The study of contracts, focusing on the design of contracts to provide appropriate incentives.
Moral Hazard
The observation that a contract promising payment for certain events changes behavior to increase the likelihood of these events.
Principal
An explanation of the term 'principal' in economic and business contexts, including the principal-agent relationship.