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vichka [17]
2 years ago
13

The "principal-agent problem" often arises in public choice when politicians pursue the best interests of their constituents

Business
1 answer:
Gekata [30.6K]2 years ago
3 0
<span>The "principal-agent problem" is when one person can make a decision on behalf of someone else that impacts the "principal". The agent works to favor the interests of the principal and receives incentives for doing so in return. The agent can get into a conflict of interest or make morally wrong decisions in favor of the principal they are helping. </span>
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