In the principal agent problem, a party (the agent) is appointed to act on the behalf of another party (principal), however when the incentives of both parties are not perfectly aligned, in other words, when the agent’s interests differ from the principal’s a problem becomes present. The agent would become more likely to act in his or her own interests, rather than the interests of the principal. Principal agent problem allows us to see who has the power in certain circumstances, in which there is an individual that is in a position of power in a certain branch of the government. With the principal agent problem, we can see that, people in positions of power can use the benefits of such positions to pursue their own agendas, and use the power of the government to benefit themselves rather than benefitting the society. An example for the principal agent problem would be, a politician who gets away with corruption, such as embezzlement, during his or her time in the office. This becomes possible because in certain situations it can turn out to be too costly for the voters to take part in actions towards removing the politician from office. In the above example, the politician would be the agent, as he is the one with power, that is …show more content…
Some obvious examples for collective action problems are, the prisoners dilemma, and tragedy of commons. In prisoners dilemma, supposing there are 2 prisoners, both have the option to confess, or keep silent. No matter what the other prisoner does, both can individually improve their own position by confessing. If the other confesses, then one had better do the same to avoid a harsh sentence. Confession is the best option for each, if only one of them do so. But if both of them confess, the outcome becomes worse for both prisoners, than it would have been if they kept
An answer to the puzzle will be found in solutions that are in equilibrium. An equilibrium in informed rational self-interest, or a Nash equilibrium, is any solution to the problem whereby neither party could do better by altering its position. However, this is a general and broad definition. Further stipu...
In Bell’s Space Traders, it was the responsibility of the president and his cabinet to make the decision. The same would probably still be true if the ultimatum presented itself for real; however, the demographics of the group would be diffe...
When there is a dilemma that affects a group of people, actions by the right people can be
I am writing this letter to you because I chose your name for the “Adopt an Agent” program that the lab does. I based my decision solely on the awesomeness of your last name. I hope all is well with you and though I don’t know you very well, I am sure you are doing an awesome job. However, if you are not doing an awesome job you should pick it up. I don’t like to be a liar. Anyway, I hope things in the investigative world are running smoothly. I know hectic that lifestyle can be. According to our organizer, the theme for this letter is “mints.” (Breath savers if you will) So I am supposed to tie in that theme somewhere in my letter. So I guess I’ll write you a poem.
Power is a privilege that can be abused. In the book “Animal Farm” a pig named napoleon had the privilege given to him from the very prestigious and distinguished leader named Old Major. Power is given to the pigs to lead all the animals in the farm that they overruled their leader. Napoleon was nice at first but the animals soon realize what is yet to come. He stays in power a long time by using animalism, fear by jones and the dogs and propaganda to his advantage.
Why is collective behavior a power tool? When a group minds become one in a group and there's no sign of the individual that's mind. This powerful tool can lead to chaos destroying everything it's path. This tool been use all through history when powerful figures fell to the ground. What reasons people join into collective behavior ? It could be because the individual like chaos, collective behavior is best way to survive or it's just happens even if individual doesn't necessarily wants it to. All these are probably true for different individual. If collective behavior powerful tool how can utilize it for good purpose instead of chaotic ones. Figuring way to control when collective behavior happens, could teach us about how emerging starts.
The ADL is very large organization with vast influence benefiting millions of people around the globe, and according to Olson’s collective action problem members could be dissuaded from parti...
Indeed, collective action may sound like the most logical approach but it will never be 100% effective. Maine’s lobster industry’s unusual collective action worked but it worked because it involves violence and fear of the ‘harbor gang’. In order to make a collective action work, It will take years and years to alter people’s thoughts and behavior. Human beings are too caught up in their own gains too see the cost of their selfishness on other individuals. This is why the tragedy of commons exist. Throughout the
Another example of this is when women fought for suffrage. For women, they protested that they should be able to vote. Their nation went to the extent of throwing a protest for their rights. Another
Change agents mean a leader who is also in a position of power and a rare combination. The change agent a person with power and charisma, so he/she can have effect his/her own lifetime, whereas a leader’s influence may not be felt until after his/her death. Change agents are philosophers and rebels. They must have the ability to see clearly and the ability to help others to see
The theory reduces the expectations from the leader, instead focuses on matching the leader to a task
... that areas of expertise can be exploited, different people are good at different things. Groups can discuss material, and that discussion can improve the quality of the decision. Groups are less likely to suffer from judgmental biases that individuals have when they make decisions. People are more likely to follow through on decisions made by groups that they are connected to. Also, more monumental decisions can be made in groups, because one member will not be singled out for blame, making the entire group responsible.
An agency relationship is formed between two parties when one party (the agent) agrees to represent another party (the principal). Normally, all employees who deal with third parties are considered agents. Principal-Agent relationships are defined as the understanding that the agent will act for and on behalf of the principal. (Cheeseman) The agent assumes an obligation of loyalty to the principal that he will follow the principal’s instructions and will neither intentionally nor negligently act improperly in the performance of the act. An agent cannot take personal advantage of the business opportunities the agency position uncovers. A principal-agent relationship is fiduciary, meaning these obligations bring forth a fiduciary relationship of trust and confidence. As such, an agency relationship is governed by employment law.
Collective action is defined as actions taken by like-minded individuals in an effort to achieve the same goal. Though this seems to be an asset to the United States government, the country cannot seem to master the idea of working together toward a common goal due to several problems. The textbook presented many of these problems that may prevent the United States from implementing collective action including, coordination, the prisoner’s dilemma, and logrolling.
Nobel prize winning Aung San Suu Kyi once said “It is said that power corrupts, but actually it's more true that power attracts the corruptible.” In George Orwell’s Animal Farm, power is originally used to achieve a number of positive things; it unites the animals of Manor Farm, allows them to organize a Revolution, and gain their freedom from oppression. However, this positive utilization of power is short lived and turns into a disunifying and destructive force causing the utopia they fought to create to crumble. Corruption serves as the driving force for this destabilization as clearly seen in the major leaders of the novel; Mr. Jones, Napoleon, and Snowball.