This video was extremely helpful - thank you!! I would like to ask what the model would look like if the employer received sales (depending on worker's effort) but would not have to pay a salary to the worker, such as in slavery systems? Could we show mathematically that no financial incentive would result in a loss of efficiency from the agent's part? If so would you mind briefly describing the new model in the comments?
I think that as a matter of representative democracy, the "Citizen" should be the Principal and "Government" the agent. My holding is based on the notion that citizens elect the government to represent them and do their bidding in the global community of nations.
Hi, I am currently reading a paper that is related to the principal-agent model, and there is a variable called "transfer payment", do you have any idea about what does it means?
thanks this is really helpful, helps me in formulating my own model
This video was extremely helpful - thank you!!
I would like to ask what the model would look like if the employer received sales (depending on worker's effort) but would not have to pay a salary to the worker, such as in slavery systems? Could we show mathematically that no financial incentive would result in a loss of efficiency from the agent's part? If so would you mind briefly describing the new model in the comments?
I think that as a matter of representative democracy, the "Citizen" should be the Principal and "Government" the agent. My holding is based on the notion that citizens elect the government to represent them and do their bidding in the global community of nations.
thanks that was helpful. But can you go this more rigourslly in tems of math. How this models to convex optmization problem bucket.
Very intelligent, thanks
this is gold mam
Very helpful. Thank you
I want to be you, when I grow up!
Hi, I am currently reading a paper that is related to the principal-agent model, and there is a variable called "transfer payment", do you have any idea about what does it means?
thanks please provide pdf notes if poossible