Instructions
Part I: Describe an example you have experience with of the principal-agent problem (for example, you
have a desire for your children to listen in school and do well, while for them, goofing off at school might
be much more fun), and explain how incentives can be used to overcome the principal-agent problem
(such as paying your children for good grades). Include in your explanation an analysis of the risks in
using incentives.
Part II: How will you be able to apply what you learned in this course to your current or future work?
No references or citations are necessary unless otherwise used
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