In a principal-agent relationship,the principal's goal is to...

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In a principal-agent relationship, the principal hires an agent to perform a task or represent their interests, but there is a risk that the agent may act in their own self-interest instead of the principal's. Therefore, the principal's goal is to align the agent's incentives with their own goals to ensure that the agent acts in the principal's best interest. This can be achieved through various means, such as offering incentives or monitoring the agent's behavior. Controlling the agent or eradicating shirking are not necessarily the primary goals, but rather means to achieve the goal of aligning incentives. Paying the agent is a necessary part of the relationship but not the principal goal.

In a Principal-Agent Relationship,the Principal's Goal Is To