What’s the principal-agent problem? Principal = business owner Agent = an employee Here’s the problem – the principal’s incentives are different from the agent’s incentives The business owner wants what’s best for the business and will make the most money
Naval | Principal-Agent Problem
Naval | Principal-Agent Problem
Naval | Principal-Agent Problem
What’s the principal-agent problem? Principal = business owner Agent = an employee Here’s the problem – the principal’s incentives are different from the agent’s incentives The business owner wants what’s best for the business and will make the most money