kaal:claim:3373393-008

Because of bounded rationality, incomplete foresight, and information asymmetries, it is impossible for principals to contract for every possible action or inaction of the agent so as to induce the agent to act in the principal's best interests.

it is impossible for principals to contract for every possible action or inaction of the agent in order to induce the agent to act in the best interests of the principal.

Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019), II. Agency Problems in Corporate Governance, p. 5
https://ssrn.com/abstract=3373393 · source PDF

Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393

• where principals and agents face bounded rationality and incomplete foresight

failuresupport: arguedfailure: incomplete-contractingfamily: agency-cost-and-managerial-opportunismrisk-and-incentivesdisclosure

• restated_by kaal:claim:3808852-009 Because of human shortcomings, bounded rationality, incomplete foresight, and information asymmetries, it is i...
• extends kaal:claim:2992962-030 Problems with smart contracts are inevitable because of subjectivity in human relationships, bounded rationali...

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