The principal-agent problem is less likely to occur when getting a haircut than when getting a car repaired because ____

Question

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When receiving a haircut, there are typically no hidden actions or information asymmetry between the customer and the hair stylist. The customer can clearly communicate what they want and the stylist can provide the service without any adverse incentives to deviate from the customer's preferences. On the other hand, in getting a car repaired, the mechanic may have more information about the necessary repairs and may have incentives to overcharge or recommend unnecessary repairs to increase their own earnings, leading to a principal-agent problem.

The Principal-Agent Problem Is Less Likely to Occur When Getting