This preview shows page 1. Sign up to view the full content.
Unformatted text preview: express itself in ways as seemingly innocuous as the office thermostat. Below is a recent paper discussing energy usage stemming from the PA problem. In this example, the relationship is assumed to be tenant-owner rather than executive-shareholder, but on the bottom of page two is a line that neatly sums up the likelihood of the existence of a PA problem: A PA problem may exist whenever the payer is not the same agent as the decision-maker or the user. http://escholarship.org/uc/item/6p1525mg When reading, keep in mind the powerful incentive effects of the disconnect in objectives....
View Full Document
This note was uploaded on 09/27/2011 for the course FINACE 6710 taught by Professor Homaifar during the Spring '11 term at Middle Tennessee State University.
- Spring '11