{
 "@context": "https://schema.org",
 "@type": "Claim",
 "@id": "https://wulfkaal.github.io/claims/3808852-009",
 "identifier": "kaal:claim:3808852-009",
 "text": "Because of human shortcomings, 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 interest.",
 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0009-0008-7840-1847"
 },
 "citation": "Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852",
 "isBasedOn": {
  "@type": "ScholarlyArticle",
  "name": "Decentralization and Feedback Effects",
  "datePublished": "2021",
  "url": "https://ssrn.com/abstract=3808852",
  "sha256": "31e91158fdeefebc2f0be54ebf89751f7cdd4c89ecea932888f5ba9be6b1caba",
  "encoding": "https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20Decentralization%20and%20Feedback%20Effects.pdf"
 },
 "keywords": [
  "risk-and-incentives",
  "disclosure"
 ],
 "about": [
  "agency-theory",
  "incomplete-contracts",
  "bounded-rationality",
  "information-asymmetry"
 ],
 "abstract": "bounded rationality, incomplete foresight, and information asymmetries between principal and agent,7 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 interest of the principal.",
 "additionalProperty": [
  {
   "@type": "PropertyValue",
   "name": "claim_type",
   "value": "condition"
  },
  {
   "@type": "PropertyValue",
   "name": "confidence",
   "value": "evidenced"
  },
  {
   "@type": "PropertyValue",
   "name": "scope_conditions",
   "value": [
    "applies to principal agent relationships in limited liability entities"
   ]
  },
  {
   "@type": "PropertyValue",
   "name": "is_failure_mode",
   "value": false
  },
  {
   "@type": "PropertyValue",
   "name": "attestations",
   "value": "https://wulfkaal.github.io/colloquium/attestations/7fc491fcfdd350cc950a899e11d97e4dd028ea0b6afa5a3b84bf63658df8df3b.json"
  },
  {
   "@type": "PropertyValue",
   "name": "edges",
   "value": [
    {
     "rel": "restates",
     "to": "https://wulfkaal.github.io/claims/3373393-008",
     "to_id": "kaal:claim:3373393-008",
     "similarity": 0.972
    },
    {
     "rel": "extends",
     "to": "https://wulfkaal.github.io/claims/2992962-030",
     "to_id": "kaal:claim:2992962-030",
     "similarity": 0.357
    }
   ]
  }
 ],
 "isPartOf": {
  "@id": "https://wulfkaal.github.io/claims/index.json"
 },
 "dateModified": "2026-07-27",
 "version": "1.0",
 "sha256": "7fc491fcfdd350cc950a899e11d97e4dd028ea0b6afa5a3b84bf63658df8df3b",
 "canonicalForm": "https://wulfkaal.github.io/claims/3808852-009.md"
}