17. Asymmetric Information, Voting, and Public Choice

17. Asymmetric Information, Voting, and Public Choice / Asymmetric Information: Adverse Selection and Moral Hazard / Problema 1

Problema 1

In the principal-agent problem, who is typically the principal?

The party who changes behavior after a contract.

The party who entrusts another with a task.

The party who has less information.

The party who carries out the task.