Principal-agent problem Essays

so he can meet his sales goals. Therefore, the car could be cosmetically beautiful but has many mechanical problems. Even though the buyer might be suspicious about the quality of the car, the buyer will have no knowledge of what is really wrong with the car. Whether or not is it a lemon? The lemons problem was first examined by economist George Akerlof in 1970. Akerlof explored the problem associated with pricing second hand cars, which he called a lemons market – a ‘lemon’ is a derogatory term

1) Government may intervene in a market in order to try and restore economic efficiency. One of the ways the government intervention can help overcome market failure is through the introduction of a price floors and price ceilings. If prices are seen to be too high, price ceiling or a maximum price could be imposed on a market in order to moderate the price of the product. This policy is often used when there are concerns that consumers cannot afford an essential product, such as groceries. The effect

their desires, which generally will be to make as much money as possible while con¬forming to the basic rules of the society, both those embodied in law and those embodied in ethical custom.” The primary responsibility of corporate executive is as an agent for owners of corporation or individuals who constitute charity

All Summer in A Day by Ray Bradbury is about how a little jealousy can turn into rage and reveals that children, along with adults, can be blinded by something so simple.The author of All Summer in A Day believes jealousy and bullying are the key emotions played in this short story. Bradbury claims that the main characters, Margot, is being bullied because she was Earth longer. Whereas, the other students don’t even remember Earth because of how early they all moved to Venus. When Margot arrives

A learning organization can be understood as an organization that takes steps to chart is future. The implicit understanding in the definition of a learning organization is that it is a belief that learning is a continuous process that grows and evolves and is adaptable and transformative. The organic learning organization responds to the needs and general concerns of and objectives of individuals within and outside of the organization. A learning organization is not too preoccupied with the ideas

Ambition: Shakespeare portrays the undeniable power of ambition throughout “Macbeth”. Ambition is a corrupting and unrelenting force in which Lady Macbeth and Macbeth fall victim to. Both Lady Macbeth and Macbeth show a desire for power. However, Lady Macbeth shows more ambition in getting immediate power. Lady Macbeth takes on a masculine persona in order to commence her plans. Rather than taking a back seat and following her husband’s instructions like the other women of this time period, Lady

Language: the language that teachers use has to be high level, which conveys a sense of professionalism that is honourable, moral and dignified. Professional judgement: the teacher should be able to place the needs of the students at the center of professional judgement. The teacher should be aware of his/her individual values, personal experience, commitment to authenticity, decision-making processes and work towards providing sound judgement. There is a school of thought which says that judgement

The world has been prospering from war for a long time. But, we do not always see the problems it causes. For instance, it tears families apart, it clashes generations, and finally it shows us principal versus reality. So, if war brings more bad things than good it defeats the purpose of even having a war in the first place. The authors of My Brother Sam is Dead also feels that war is pointless and unnecessary. War would be considered futile for many reasons including the fact that it splits families

strategic management thoughts Organisational strategies could be classified as emergent or deliberate strategies. The strategy that in which collective goals, visions or intentions of the organisation have been articulated broadly or in detail communicated to the employees within the organisation for realising the given outcome is called deliberate strategy. On the contrary, the strategy in which consistencies arises within the behaviour or actions of the organisation in a period even though the

Examples of independent contractors would be mechanics, home builders, and plumbers among many others. What make a contractor is the scope and duration of the work and how employed. when it comes to mechanics they are contracted to fix a certain problem for a defined amount of money. For example, if the mechanic needs to replace the transmission the contract will cover the time it will take to replace the transmission and the other material needed to fulfil the desired outcome of the contract, to

Comparative Analysis: Scarface (1983) and The Godfather (1972) Introduction How are the two movies different from each other? Is it the era, the theme of or its execution? In retrospective, both will surely have difference, especially since the two are created with different aims. If one is to analyze the films, one will find a grey area between its differences, wherein differences are both superficial and minor at best. Scarface is a crime-drama film that is famously known for being one of the

Cons • One problem with observation is that it can be very resource intensive. It might involve great amounts of time and energy, which can be a problem if those resources are not available in adequate quantity. If there is less time for the research to be carried out it might lead to hurried observation which dilutes the quality of the data collection process and thus has an adverse impact on the analysis • Since observation is being carried out by a human being, there exists a risk of observer

The Effect of Benevolence Values and Implicit Theories of Values on Other-Focused behaviors Who are the people who engage in other-focused behaviors? The goal of the current research is to better understand one aspect of this broad question, concerning with the personal values of prosocial individuals. Previous research found that self-transcendence values (i.e. benevolence and universalism) can predict prosocial behavior (Bardi & Schwartz, 2003); however, the correlations were rather weak, especially

that people are physically trapped by their reliance on technology and to make them think about how reliant they are on their technology. The restaurant scene is used to reveal how humanity is mentally trapped. In this scene Cypher is requesting that Agent Smith put him back in The Matrix, he does this because he doesn’t like the reality of the ‘real world’. This express Cypher’s emotions to the audience, it shows that he is tired and scared of the knowledge that comes with the ‘real world’ and needs

Estate Agent? This informative report can give you an insight into everything you've ever wanted to know about Real Estate Agent. How can you put a limit on learning more? The next section may contain that one little bit of wisdom that changes everything. If you are looking to buy or sell real estate, do not get caught like millions of other people out there, in thinking that you don't need a real estate agent. Most people who buy or sell homes, generally think that a real estate agent is a waste

The advantages of hiring an agent will really help the real estate transaction. Clients will be more confident that their business will be handled by the right person knowledgeable already. Perhaps, there are a lot of reasons why there is a need of an agent in the real estate negotiation. Let me just name a few of these things. Agents are licensed. These people went to training to get their name authenticated so they can perform and be more confident on facing their clients. They have the knowledge

Group decision making is a process where a group of people assemble to analyze problems or tasks, introduce and evaluate alternatives and eventually reach a solution. The chosen solution is no longer attributable to an individual but to the group. Considering group decision making progress, the outcome should benefit the group, not the members. Famous idiom says, “Time is of the essence.” In our days, businesses and organizations are not only obliged to produce high quality of products and services

1. Introduction In the organization environment, managers are taking the leadership characters and they act as leaders. They motivate other employees to achieve the target of specific goal of the organization. Leadership is possibly perceived and understands the phenomena of the (Burns, 2010). Naylor (1999) states that effective leadership has different characteristics such as passionate, visionary, creative, inspiring, flexible, innovative, imaginative, courageous, initiates change and experimental

According to Kendra Cherry (2016), Permissive parenting is a type of parenting style characterized by low demands with high responsiveness. Permissive parents have a habit of to be very loving, yet provide few plans and rules. These parents do not expect mature behaviour from their children and often seem more like a friend than a parental symbol. Because there are few rules, expectations and demands, children raised by permissive parents tend to struggle with self-regulation and self-control. On

This theory is premised on Biblical belief that man “will live no longer than a hundred and twenty years (Gen. 6:3)”; life cycle theories that the charting of life course from birth to death occurs in successive, clearly defined stages, of which each stage is characterized by events or crises that must be satisfactorily resolved in order for development to proceed smoothly; and sociological concepts of reflexivity and relativism that hold that sociology frequently and critically analyses social