You are here

Dealing with the middleman

Regulations are one thing, but the onus is still on consumers to educate themselves

Minimising risk: The best way to solve the principal-agent problem is to tackle the heart of the issue - that agents know more than principals. - FILE PHOTO

THERE is a term for situations when fundamental conflicts of interest happen: the principal-agent problem. You, the important person called the principal, want to get someone else, called the agent, to do things on your behalf. The agent has expertise. You don't have time to do these things