The problems within the Principal-Agent model are numerous and detrimental to the functionality of the system when a cost/benefit analysis is applied to the Principal actor (i.e. the public). While Geoffrey Brennan and Alan Hamlin see the principal-agent model as a sort of least worst system that, while flawed, is still mendable while still maintaining it's central characteristics. One of the main criticisms against the Principal-Agent model is concerning a question that has been asked for almost as long as representative government: Does the representative make decisions that his/her constituency wants or do they do what is in their “interest”? Edmund Burke, in his famous speech to the Electors of Bristol, remarked that a representative's “mature judgment” and “enlightened conscience” allows him/her to choose what is in the best interest of their constituency. This form of thinking is necessarily implied in ...
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...ill fitting to a system which carries the name “Democracy”.
The Principal-Agent model is either regarded as a system which is the most practical or as the best system that can realistically exist, both assuming that a simpler, more direct system is unfeasible. To realize the limitations of the Principal-Agent system is to understand the flaws that render the model as destructive to the institution of democracy that can be mended in due time. While examining the essential problems of the Principal-Agent modal it is clear that the Agent actor is the cause of many of the disabilities that afflict this model by perpetuating a false sense of representation. It becomes fully apparent that this model cannot continue in it's current form without causing further harm to those that lack proper representation or to those that yearn for more equitable representation.
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