In 2013, President Obama nominated Chuck Hagel as secretary of defense to lead the Defense Department.There was substantial controversy in the Senate regarding some of Hagel's policy positions, and a number of senators attempted to block Hagel's confirmation as secretary, although he was eventually approved by a vote of 58-41.This attempt to block Hagel's confirmation is an example of which type of control to address the principal-agent problem?

Question

Quizplus · Accepted Answer

Attempting to block Hagel's confirmation as secretary is an example of a before-the-fact control mechanism because it is an attempt to prevent a potential agent from being appointed to a position of power where they could potentially act against the principal's interests. This type of control mechanism is proactive and attempts to prevent problems before they occur.

In 2013, President Obama Nominated Chuck Hagel as Secretary of Defense