Here are some prompts: · When and why principal-agent relationships exist · How contracts attempt to deal with the principal-agent problems · Examination of principal-agent problems that occur inside a firm · Examination of principal-agent problems between firms or between people external to a firm · Moral hazard · Discussion of hidden information an hidden action. The role of observability, verifiability, and measurement in contributing to moral hazard · To examine various solutions to those problems including incentive compensation, monitoring, tournaments, etc. in the specific contexts of internal labor markets as well as the relationship between an investor and an entrepreneur. Ethics is there, but it’s not the main focus of the article. Thanks, Case is attached.
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