Monday, February 26, 2007

Principal-Agent Issues

Just was thinking about it... and its one of my favorite subjects to ponder. Particularly after reading this post James Hamilton over at econbrowser. It seems the good folks over in San Diego are a poster child for a principal-agent issue. The government attempts to cover this gap, by enforcing a fiduciary responsibility. Is there another way besides regulation to solve this issue?

I am not too sure... any thoughts would be welcome in the comments.

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