An individual is least likely to confront the principal-agent problem while availing services from _____

Question

Quizplus · Accepted Answer

An air hostess is unlikely to face the principal-agent problem as their roles and responsibilities are straightforward, and their job is mainly to ensure the safety and comfort of the passengers. They do not have any significant decision-making authority, which reduces the chances of any agency conflicts arising between them and the passengers. On the other hand, plumbers, real estate agents, car mechanics, and travel agents are more likely to face the principal-agent problem as they have higher decision-making authority and could potentially act in their self-interest instead of the clients.

An Individual Is Least Likely to Confront the Principal-Agent Problem