PRINCIPAL AGENT PROBLEM | MICROECONOMICS | LEARN OIKONOMIA

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Published on February 12, 2025 12:40:46 PM ● Video Link: https://www.youtube.com/watch?v=tUuf2-1GXgY

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In this video, we dive deep into the Principal-Agent Problem, a key concept in microeconomics and agency theory. Learn how this economic issue arises when one party (the principal) hires another party (the agent) to act on their behalf, but their goals and incentives are misaligned. This misalignment can lead to inefficiencies like moral hazard and adverse selection.

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