The Moral Hazard of Short Term Attitudes

In the fields of political science and economics, you will commonly see discussion of the “Principal-Agent Problem” (also known as agency dilemma) which deals with the outcomes of situations of conflicted interest, or asymmetric information, where (for example) an agent (such as an investment manager) acting for a principal (such as an investment bank) may have their own goals and objectives versus the interests of the principal. In classic management theory, the tools used to…

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