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The prime cause behind this is the incomplete information available at the desk of selecting authorities (principal) about the agents they selected. [34] For example, the Ministry of Road and Transport Highways hired a private company to complete one of its road projects, however, it was later found that the company assigned to complete road ...
The multiple principal problem, also known as the common agency problem, the multiple accountabilities problem, or the problem of serving two masters, is an extension of the principal-agent problem that explains problems that can occur when one person or entity acts on behalf of multiple other persons or entities. [1]
The relationship between a company's shareholder and the board of directors is generally considered to be a classic example of a principal–agent problem. The problem arises because there is a division between the ownership and control of the company, [10] as a result of the residual loss.
One example is a principal–agent approach (also called agency theory), where one party, called an agent, acts on behalf of another party, called the principal. However, a principal–agent problem can occur when there is a conflict of interest between the agent and principal. If the agent has more information about his or her actions or ...
The law of agency is an area of commercial law dealing with a set of contractual, quasi-contractual and non-contractual fiduciary relationships that involve a person, called the agent, who is authorized to act on behalf of another (called the principal) to create legal relations with a third party. [1]
Legal jurisdictions which provide for apparent authority include the United States, the United Kingdom, Australia, Canada and South Africa.The doctrine of apparent authority is based on the concept of estoppel, thus, it prevents the principal from denying the existence of agency to a third party, provided that a representation, as to the agent's authority, has been made by him to the third ...
In real estate, stigmatized property is property that buyers or tenants may shun for reasons that are unrelated to its physical condition or features. [1] These can include death of an occupant, [ 1 ] [ 2 ] murder , [ 1 ] [ 2 ] suicide , [ 2 ] previous illicit activities, and even the belief that a house is haunted .
For example, buyers and sellers are two common types of agents in partial equilibrium models of a single market. Macroeconomic models , especially dynamic stochastic general equilibrium models that are explicitly based on microfoundations , often distinguish households , firms , and governments or central banks as the main types of agents in ...