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Economics & Markets

The Agency Problem

Economics & Markets · Adam Smith / Michael Jensen / William Meckling

1 min read

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Overview

The conflict of interest that arises when an agent making decisions on behalf of a principal has different incentives than the principal.

How to cite

Faster Than Normal. “The Agency Problem Mental Model.” fasterthannormal.co/mental-models/the-agency-problem. Accessed 2026.

On this page

  • Overview