Monday, November 30, 2009

The Agent-Principal Problem

As you know, the "agent-principal problem" arises from a misalignment of incentives.  One of our readers has identified a clip from the television show, The Office that illustrates the agent-principal problem quite nicely.
The relevant section is 9:25 to about 15:05.

While I don't watch the show, I looked at the clip and it does the job.  Thanks for the "heads up," Mr. B.

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