3 ms·
While true, you can somewhat assume that the principle could have already incentivized the agent to align by assigning rewards for increasing profits (aka, bonu
by chii 3y ago
While true, you can somewhat assume that the principle could have already incentivized the agent to align by assigning rewards for increasing profits (aka, bonuses, stock grants based on performance targets etc).
- JumpCrisscross 3y ago> you can somewhat assume that the principle could have already incentivized the agent to align by assigning rewards for increasing profits No, you can’t. This is the problem of corporate management. Management will tend to act to maximise profit margins or even the stock price is a bad explanatory model.