Showing posts with label regulation. Show all posts
Showing posts with label regulation. Show all posts
Monday, May 3, 2010
BP and the Blame Game
When and if there is agency loss, who's to blame--(1) the principal who hires the agent to work in its interest, (2) the agent who may be incentivized to simultaneously increase its own profits while decreasing costs to the principal, or (3) the government who regulates these transactions to prevent negative externalities?
Labels:
agency loss,
agent,
BP,
gulf,
oil spill,
principal,
regulation
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