My mother has always said, "If you want something done right, you have to do it yourself." What type of asymmetric information problem does her statement reflect?

Question

Quizplus · Accepted Answer

The statement reflects a principal-agent problem, where the person hiring someone else (the principal) may not have complete information about the ability or motivation of the person being hired (the agent) to do the job properly. This creates an incentive for the principal to do the job themselves, rather than risk the potentially sub-optimal performance of the agent.

My Mother Has Always Said, "If You Want Something Done