The ________ occurs when an individual or a group acts on behalf of another.

Question

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The term "principal-agent" refers to a relationship where an individual or a group (the principal) hires another individual or group (the agent) to perform a task or make decisions on their behalf. This relationship can create conflicts of interest, as the agent may have different goals or incentives than the principal. Therefore, the principal-agent game is a way to understand and analyze these conflicts and the strategies that the parties may use to mitigate them.

The ________ Occurs When an Individual or a Group Acts