Agency Dilemma

(noun)

Takes into account the difficulties in motivating one party (the "agent"), to act on behalf of another (the "principal").

Examples of Agency Dilemma in the following topics:

  • Defining Agency Conflicts

    • Agency conflicts can occur when the incentives of the agent do not align with those of the principal.
    • The principal–agent problem or agency dilemma, developed in economic theory, concerns the difficulties in motivating one party (the "agent"), to act on behalf of another (the "principal").
    • The deviation from the principal's interest by the agent is called "agency costs. " Agency costs mainly arise due to contracting costs and the divergence of control, separation of ownership and control, and the different objectives (rather than shareholder maximization) of the managers.

  • Top U.S. Advertising Agencies

  • [PF content: Federal Policing and Intelligence Agencies]

  • The Six Departments of a Full Service Agency

  • The Flow of Agency-Related Activities

  • The Prisoner's Dilemma and Oligopoly

    • The prisoner's dilemma shows why two individuals might not cooperate, even if it is collectively in their best interest to do so.
    • Similarly to the prisoner's dilemma scenario, cooperation is difficult to maintain in an oligopoly because cooperation is not in the best interest of the individual players.
    • One traditional example of game theory and the prisoner's dilemma in practice involves soft drinks.
    • Prisoner dilemma scenarios are difficult strategic choices, as any deviation from established competitive practice may result in less profits and/or market share.
    • Analyze the prisoner's dilemma using the concepts of strategic dominance, Pareto optimality, and Nash equilibria

  • Ethical Conflicts

    • A person who must choose between competing moral imperatives faces an ethical dilemma.
    • Several ideas from political philosophy can guide managers in resolving an ethical dilemma:
    • Justice: Another way to consider an ethical dilemma is by considering the principle that all people should be treated equally.
    • Common good: Finally, resolving an ethical dilemma might mean considering whether one choice is more in keeping with the long-term welfare of all affected parties.
    • Discuss the innate contradictions that often arise in an ethical dilemma, where two or more different moral imperatives conflict

  • Ethics: the authentic rim on the wheel

    • Who will I go to for advice when I have a moral/ethical dilemma?
    • Environmental Protection Agency, "Indoor Air Quality: An Introduction to Indoor Air Quality: Organic Cases (Volatile Organic Compounds-VOCs), http://www.epa.gov/iaq/voc.html)

  • Providing National Security

    • These organizations include the Department of Defense, the Department of Homeland Security, the Central Intelligence Agency, and the White House National Security Council.
    • The Central Intelligence Agency is part of the Executive Office of the President of the United States.
    • the Central Intelligence Agency, responsible for providing national security intelligence assessments

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