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stars_and_moon stars_and_moon
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8 years ago
Tom is playing cards with his friends and starts boasting how at work he just ordered expensive speakers for his computer, a new chair that has real leather, and upgraded all his airline flights to first class.  He said his company is so big that no one will even notice when he passes the bill on to the company.  How does this relate to the principal-agent problem and what incentives would you suggest Tom's company try?
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kingbykingby
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8 years ago
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#2
8 years ago
I figured, great answer
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#3
8 years ago
I was slightly debating this one, thanks for the feedback
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