A doctor pursuing his own interests rather than the interests of his patients is an example of the principal-agent problem.

Question

Quizplus · Accepted Answer

The principal-agent problem occurs when there is a conflict of interest between the principal (the patients) and the agent (the doctor), leading the agent to pursue their own interests rather than those of the principal. This can happen in situations where the agent has more information or expertise than the principal, such as in healthcare. Therefore, a doctor pursuing their own interests rather than the interests of their patients is an example of the principal-agent problem.

A Doctor Pursuing His Own Interests Rather Than the Interests