Asymmetric information is said to be the main cause of the principal- agent problem.

Name: Asymmetric information is said to be the main cause of the principal- agent problem.
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Asymmetric information occurs when one party in a transaction has more or superior information compared to another. This imbalance often leads to the principal-agent problem, where the agent (acting on behalf of the principal) might not act in the best interest of the principal due to the information advantage.

Asymmetric Information Is Said to Be the Main Cause of the Principal-