THE PRINCIPAL-AGENT PARADIGM - ITS RELEVANCE TO VARIOUS FUNCTIONAL FIELDS

Authors
VANACKERE A
Citation
A. Vanackere, THE PRINCIPAL-AGENT PARADIGM - ITS RELEVANCE TO VARIOUS FUNCTIONAL FIELDS, European journal of operational research, 70(1), 1993, pp. 83-103
Citations number
48
Categorie Soggetti
Management,"Operatione Research & Management Science
Journal title
European journal of operational research → ACNP
ISSN journal
03772217
Volume
70
Issue
1
Year of publication
1993
Pages
83 - 103
Database
ISI
SICI code
0377-2217(1993)70:1<83:TPP-IR>2.0.ZU;2-V
Abstract
The main characteristics of the basic principal/agent model are discus sed. Several applications of this model to the fields of accounting, i ndustrial organization, finance and marketing are presented. The poten tial for application to management science problems is highlighted, an d a batch-size problem is analyzed to illustrate the concepts involved . The paper concludes with a discussion of the major criticisms of the agency model.