Which of the following have the potential to ameliorate principal-agent conflicts? A. Lobbying regulatory agencies to take enforcement action B. Detailed contracts that specify the precise terms of the principal-agent relationship, violations of which are easily detected C. Reputation D. Monitoring of the principal by the agent E. (B) and (C)

Which of the following have the potential to ameliorate principal-agent conflicts? A. Lobbying regulatory agencies to take enforcement action B. Detailed contracts that specify the precise terms of the principal-agent relationship, violations of which are easily detected C. Reputation D. Monitoring of the principal by the agent E. (B) and (C)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 2E

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	A.	Lobbying regulatory agencies to take enforcement action
	B.	Detailed contracts that specify the precise terms of the principal-agent relationship, violations of which are easily detected
	C.	Reputation
	D.	Monitoring of the principal by the agent
	E.	(B) and (C)