A closer look.
A principal delegates a task to an agent whose incentives or information may differ from their own. That difference can lead the agent to choose actions the principal would not prefer.
Why it matters
Contracts, oversight, and measures of performance influence what delegated work actually achieves.
A useful lens. Not a universal law.
- Misaligned incentives are not the only explanation for poor outcomes. Uncertainty, resource limits, and genuine disagreement also matter.
Further reading
A researched reading list is planned for this entry. The current field notes and thinker associations are provisional editorial content.