Decision Analysis and the Principal-Agent Problem
Document Type
Article
Publication Date
3-2009
Abstract
The article discusses the classroom lecture that improves the traditional instruction in decision analysis by relating decision making under risk to the principal-agent problem. The baseline decision scenario is examined both from the perspective of a firm desiring to maximize the expected profit and from the perspective of a risk-averse manager desiring to maximize the expected utility. The article also provides students' assessments regarding the effectiveness of the lecture.
Journal Title
Decision Sciences: Journal of Innovative Education
Journal ISSN
0011--7315
Volume
7
Issue
1
First Page
51
Last Page
57
Digital Object Identifier (DOI)
10.1111/j.1540-4609.2008.00201.x
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