Can someone answer a discussion question?

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

a

Economics for Managers

course

, in

your current or future work

of financing.

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 a Economics for Managers

course, in your current or future work of financing.