The agency problem arises because of the agents' self-interest and information asymmetry, with the agent having more information than the principal.
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Solution 1
The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in the best interest of another. This problem arises when the agent (the party making the decisions) has different goals and objectives than the principal (the party affected by the decisions Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
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