The Economics of Uncertainty Season 1 Episode 12 The Principal-Agent Problem: When Mice Play
- TV-PG
- May 29, 2015
- 30 min
Focus on a special case of moral hazard: the principal-agent problem, in which an agent is appointed to handle a matter beyond the expertise of the person doing the hiring (the principal). The agent may easily take unfair advantage of this situation, which covers everything from home repair to government contracting.