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Principal-Agent Model/Evidence
Method evidence record

Principal-Agent Model

The Principal-Agent Model analyzes how a principal (e.g., owner, employer, policymaker) can incentivize an agent (e.g., manager, employee, firm) to act in the principal's interest when the agent has private information or can take hidden actions. Formalized by Jensen and Meckling in 1976, the model identifies agency costs arising from moral hazard (the agent exerts less effort than desired) and adverse selection (the agent hides unfavorable information). Optimal contracts balance incentives with risk allocation.

Sources recorded, not reviewed

Source record

Citations copied verbatim from the method’s source record. No claim-level verification is inferred from them.

Principal-Agent Model with Asymmetric Information and Moral Hazard
Taxonomic method record · ml-model / game-theory
  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. · DOI 10.1016/0304-405X(76)90026-X
  • Holmstrom, B. (1991). The firm as a subpoena server. Journal of Law, Economics and Organization, 7(2), 53-64. · URL
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Curated claims

Claims persisted in the evidence ledger, each with its own assessment.

No curated claims yet

This view does not invent a claim assessment when the ledger has none.

Related methods

Generated from the method graph and shown as machine-suggested relations — no evidence claim is inferred.

Taxonomic bucketBayesian Nash Equilibriummachine-suggested · Relational suggestion, not evidence.Taxonomic bucketNash Equilibriummachine-suggested · Relational suggestion, not evidence.Taxonomic bucketShapley Valuemachine-suggested · Relational suggestion, not evidence.Taxonomic bucketVCG Mechanismmachine-suggested · Relational suggestion, not evidence.

Evidence status

Sources recorded, not reviewed

Bibliographic sources are present. Claim-level evidence review has not been performed.

Sources

2 recorded citations, copied from the method source record.

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