Principal agent problem | MBA 6053 – Economics for Managers | Columbia Southern University


Part I: Describe an example you have experience with of 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 an analysis of the risks in using incentives.

Part II: How will you be able to apply what you learned in this course to your current or future work?