Noelle's mother has always said,"If you want something done right,you have to do it yourself." What type of asymmetric information problem does her statement reflect?

Question

Quizplus · Accepted Answer

Noelle's mother's statement reflects a principal-agent problem, where the principal (her mother) is concerned about the agent's (other people's) performance, as she believes that they may not do the job well enough. This problem arises due to the information asymmetry between the principal and the agent, where the principal has better information about the task at hand.

Noelle's Mother Has Always Said,"If You Want Something Done Right,you