The principal-agent problem is a problem for the private sector but does not apply to political decision making.

Name: The principal-agent problem is a problem for the private sector but does not apply to political decision making.
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The principal-agent problem can also occur in political decision-making, where elected officials may act in their own self-interest rather than the interest of their constituents, resulting in a lack of accountability and potentially negative outcomes for the public.

The Principal-Agent Problem Is a Problem for the Private Sector