Title

Decision Analysis and the Principal-Agent Problem

Department

Economics, Finance, & Quantitative Analysis

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

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