Risk Allocation

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August 31, 2024 4 min read Definitions
Agency Theory: Understanding Principal-Agent Relationships
Economics Finance Management Principal-Agent Relationship Asymmetric Information Incentive Structures Risk Allocation Agency Costs
Agency Theory delves into the contractual relationship between a principal and an agent, analyzing the complexities arising from asymmetric information and differing objectives. It has wide applications in economics, corporate governance, and public administration.
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