principals’s interests. This is how principal-agent relations would work ideally. Although in the real world, agents always have interests of their own. As a result, the principal-agent relationship s rife with potential conflicts that demand skillful management behind the table. Agenncy Benefits: Knowledge- an agent may have specialized knowledge, that the principal lacks, about market conditions, formal or informal norms, or relevant risks and opportunities. Resources- An agent, by reason of his…
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